The Effect of Profitability, Liquidity, Dividend Policy, and Capital Structure on Firm Value in Food And Beverage Companies Listed on the Indonesia Stock Exchange in 2017--2021

Abstract

In the business world, competition between companies is growing rapidly along with the times. When new companies merge, the companies compete with each other to increase sales and market of each other’s products. In Indonesia, the industrial sector is growing rapidly, such as the food and beverage industry, which will continue to be needed by humans. As a result, new companies are emerging, and competition is getting tougher, impacting performance improvement. Based on the value of food and beverage companies in 2017–2021, there were fluctuations in several companies. In 2020, food and beverage companies experienced a decline due to COVID-19, so in 2020, several companies experienced a decline in their firm value. This research aims to analyze the influence of profitability, liquidity, dividend policy, and capital structure on firm value in food and beverage listed on the Indonesia Stock Exchange in 2017–2021. The type of this research is quantitative, secondary data. Data that had been collected were then processed using the SPSS 26 version analysis tool. The sample selection in this research was purposive sampling. Results show that profitability positively and significantly influences firm value. Liquidity has a negative and insignificant effect on firm value. Dividend policy has a positive and insignificant effect on firm value. Capital structure has a positive and insignificant effect on firm value. Profitability, liquidity, dividend policy and capital structure simultaneously influence firm value. Keywords: profitability, liquidity, dividend policy, capital structure, firm value