The Impact of Dividend Policy as a Mediator Between Liquidity and the Financial Performance of the Company (Emepirical Study on Companies Included in the Bumn20 Index for The 2017-2022 Period)

This study was conducted to examine whether there is an effect of liquidity on the financial performance of issuers with dividend policy as a mediating variable in IDX BUMN20 index companies listed on the Indonesia Stock Exchange for the period 2017-2022. In this study, liquidity is proxied by the quick ratio, dividend policy is proxied by dividend yield and financial Researches related to financial performance are presented by several previous studies. Diana and Osesoga (2020), correlate a company's financial performance with liquidity, solvency, asset management, and company size. Ni Luh Gede and Elly (2018) correlate a company's financial performance with liquidity. Irsad, et al., (2022) in their research correlate a company's financial performance with liquidity, solvency, activity, and profitability. Akhmadi et al., (2020) in their research related the company's financial performance to the role of debt and dividend policy.is proxied by return on equity. The study population consisted of 27 IDX BUMN20 index issuers listed on the IDX during that period, with a sample of 6 issuers selected through purposive sampling. The data analysis method used is intervening regression analysis. The results of the study show that Liquidity has a positive and significant effect on financial performance. This indicates that issuers with high liquidity tend to have good ability to fulfill their current debts and in dealing with financial emergencies. Dividend yield as a proxy for dividend policy has a perfect mediating effect on the relationship between liquidity (proxied by the quick ratio) and financial performance (proxied by return on equity). If a company has a high level of liquidity and therefore decides to increase its dividends, this can be a signal to investors that the issuer has good financial health and positive financial performance prospects in the future.