The Effect of Liquidity, Profitability and Dividend Policy on Firm Value of Manufacturing Companies Listed On the Indonesia Stock Exchange

Abstract

The long-term goal of a company is to maximize the value of the company. There are several factors that affect firm value including liquidity, profitability, and dividend policy. This study aims to determine the effect of liquidity, profitability, and dividend policy on firm value. The population in this study are manufacturing sector companies that have been listed on the Indonesia Stock Exchange from 2018-2020. The method of determining the sample used in this research is to use the purposive sampling method, namely the technique of determining the sample with certain considerations. From the criteria that have been set, it can be determined that the sample used in this study is 112 companies and the number of observations for 3 years is 336. The data analysis method used is multiple linear regression analysis technique. The results of this study, liquidity, profitability and dividend policy have a positive and significant effect on firm value. This means that the increasing value of manufacturing sector companies on the IDX will increase if liquidity, profitability and dividend policy also increase.