Leverage and profitability affect company value with dividend policy as an intervening variable in Indonesian Stock Exchange-Listed Plantation Companies
Keywords:
company value, dividend policy, leverage, profitabilityAbstract
The purpose of this study was to examine the impact of leverage (DER) and profitability (ROE) on firm value (PBV), with dividend policy (DPR) serving as an intervening variable. This study utilizes pre-existing data. The sample selection employed a purposive sampling strategy, resulting in the inclusion of 3 out of 24 organizations. This study employed the Partial Least Square (SmartPLS) analytic tool version 3. The data utilized in this study were acquired from the financial reports of plantation firms that underwent an initial public offering on the Indonesia Stock Exchange between the years 2018 and 2021. Findings of the research: 1). Leverage positively and significantly impacts firm value. 2). Profitability negatively and significantly impacts firm value. 3). Leverage has no impact on dividend policy. 4). Profitability negatively and significantly impacts dividend policy. 5). Dividend policy has no impact on firm value. 6). Leverage does not mediate the effect of dividend policy on firm value. 7). Profitability does not mediate the effect of dividend policy on firm value.
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