The Effect of Profitability on Company Value Through Dividend Policy in Pharmaceutical Companies in Indonesia

Abstract

Firm value is the success of the company which is often associated with stock prices. This study aims to analyze the effect of profitability on dividend policy, analyze the effect of profitability on firm value, analyze the effect of dividend policy on firm value, and analyze dividend policy as a mediator of the relationship between profitability and firm value. The population in this study was 10 companies; the sampling technique used purposive sampling so that a sample of 9 companies was obtained during the period 2016 to 2021. The analysis technique used simple regression analysis, and multiple regression analysis. The results analysis shows that profitability has an effect on dividend policy. Profitability has an effect on firm value. Dividend policy has an effect on firm value and Policy as a mediator of the relationship between profitability and firm value.