Dividend Policy as Moderating Variable on the Effect of Leverage and Profitability on Firm Value

Abstract

Investors are very interested in the value of go public companies as a consideration in making investment decisions. Investors have the main goal to earn income or return on investment, one of which is dividends. The capital managed by the company comes from internal and external sources. Proper management of capital sources is important by companies so that investors' goals are achieved, therefore this study aims to determine the effect of Dividend Policy as a moderating variable on the effect of Leverage and Profitability on Firm Value in Manufacturing companies, especially the consumer goods industry sector listed on the Indonesia Stock Exchange in the period 2018-2020. This research uses purposive sampling method, with multiple linear regression analysis technique. The results show that leverage has a significant negative effect on firm value, profitability has a significant positive effect on firm value, while the dividend policy variable is able to moderate the effect of leverage, and profitability on firm value negatively and significantly.