What question did this study set out to answer?

The study aims to assess how profitability, liquidity, and dividend policy affect the value of firms in the consumer goods sector.

April 3, 2020Open Access

Pengaruh Profitabilitas, Likuiditas Dan Kebijakan Dividen Terhadap Nilai Perusahaan Sektor Industri Barang Konsumsi Di Bei

Key Points

The study aims to assess how profitability, liquidity, and dividend policy affect the value of firms in the consumer goods sector.
Conducted during 2016-2018 across 17 consumer goods companies using purposive sampling.
Employed financial statement data from IDX's official website via non-participant observation method.
Profitability has a significant positive effect on firm value (p<0.01).
Liquidity has a significant negative effect on firm value (p<0.05).
Dividend policy also shows a significant negative effect on firm value (p<0.05).

Abstract

The purpose of this study is to determine the significance of the effect of profitability, liquidity and dividend policy on firm value. This research was conducted at the consumer goods industry sector companies on the Indonesia Stock Exchange (BEI) 2016-2018 period. The number of samples in this study were 17 companies with a purposive sampling method. Data collection was carried out using a non-participant observation method, through financial statement data published on the IDX's official website, www.idx.co.id. The results of the analysis showed that profitability had a significant positive effect on firm value. Liquidity and dividend policy have a significant negative effect on firm value. This means that profitability is the main factor that most influences the value of the company and is considered by investors to invest. Keywords: firm value, profitability, liquidity, dividend policy

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