Moderating Effect of Dividend Policy on Financial Performance

Abstract

This study aims to examine the effect of financial performance presented by liquidity, leverage, and profitability on firm value with dividend policy as a moderating variable. The object of this study is a manufacturing company listed on the Indonesia Stock Exchange for the period 2016 to 2020. By using purposive sampling, from a population of 195 companies, 38 companies were obtained that could be used as samples in this study. The analytical method used in this study is regression with the help of the SPSS program. The results show that liquidity as measured by the Cash Ratio does not significantly affect the firm value and the dividend policy variable is not able to moderate the effect of the Cash Ratio on firm value. The results are the same for leverage, where leverage has no effect on firm value and dividend policies are unable to moderate it. Profitability in this study has a significant effect on firm value; however, dividend policy is not able to moderate the effect of profitability on firm value.