The Impact of Capital Structure, Dividend Policy, and Profitability on Firm Value Among Companies Listed on the Indonesia Stock Exchange

This study examines the effects of capital structure, dividend policy, and profitability on firm value in property and real estate companies listed on the Indonesia Stock Exchange (IDX). The Indonesian property sector has experienced fluctuating performance over recent years despite the increasing demand for housing, creating uncertainty regarding the determinants of firm value. A quantitative research design with a correlational approach was employed using secondary data obtained from audited annual financial statements. The sample consisted of 11 property and real estate companies selected through purposive sampling, resulting in 44 firm-year observations covering the 2021–2024 period. Firm value was measured using Price-to-Book Value (PBV), while capital structure, dividend policy, and profitability were proxied by the Long-Term Debt-to-Equity Ratio (LTDtER), Dividend Payout Ratio (DPR), and Return on Assets (ROA), respectively. The data were analyzed using multiple linear regression with SPSS after satisfying the classical assumption tests, including normality, multicollinearity, and heteroscedasticity tests. The findings reveal that capital structure and dividend policy have positive and statistically significant effects on firm value. In contrast, profitability has a positive but statistically insignificant effect on firm value. Simultaneously, capital structure, dividend policy, and profitability significantly influence firm value, with an adjusted explanatory power reflected by an R² of 25.4%. These findings suggest that investors in the Indonesian property sector place greater emphasis on financing decisions and dividend distribution than on short-term profitability when assessing firm value. The study contributes to the literature by providing empirical evidence from the Indonesian property and real estate industry during the 2021–2024 period.