The Effect Of Liquidity, Capital Structure, And Dividend Policy On Company Value With Profitability As An Intervening Variable In The Consumer Industry Sector Period 2019-2023

Abstract

This study analyzes the effect of liquidity, capital structure, and dividend policy on firm value with profitability as an intervening variable in the consumer industry sector for the period 2019-2023. This study uses a quantitative approach with the Structural Equation Modeling-Partial Least Squares (SEM-PLS) method. The data used are the annual financial reports of 18 consumer industry sector companies listed on the Indonesia Stock Exchange during the study period. The results of the study indicate that capital structure and profitability directly have a significant effect on firm value, dividend policy shows a significant effect on Profitability, capital structure has a significant effect on firm value, while liquidation and dividend policy do not affect firm value, while liquidation does not significantly affect profitability, capital structure does not affect profitability. Profitability is proven to act as an intervening variable in the relationship between liquidation, capital structure, and dividend policy do not affect firm value through profitability, This study provides practical implications for company management to optimize capital structure to increase firm value through profitability. In addition, the results of this study can also be a consideration for investors in evaluating investment opportunities in the consumer industry sector.