EFFECT OF PROFITABILITY AND DEVIDEND POLICY ON COMPANY VALUE WITH CAPITAL STRUCTURE AS INTERVENING VARIABLES (Empirical Study on Manufacturing Companies on the IDX 2014-2016)

Abstract

Currently, many investors invest their capital to invest in the purpose of providing benefits in the future, but before investing capital, investors or fund owners must analyze which companies will be selected. Choosing a good company can be seen from a variety of indicators, one of which is the value of the company. Company value is considered very important because it can reflect the state of a company. There are many factors that can increase the value of a company, including profitability, dividend policy and capital structure. The purpose of this study is to analyze the effect of profitability and dividend policy on capital structure and firm value. The population used in this study is a manufacturing company listed on the Indonesia Stock Exchange (BEI) in 2014-2016. The sample of this research is 123 companies determined by purposive sampling. Analyzer used multiple regression and hypothesis testing. Based on the results of data analysis can be concluded that Profitability has a negative effect on capital structure, dividend policy has a positive effect on capital structure, Profitability and dividend policy together positively affect the capital structure, Profitability has a positive effect on firm value, Capital structure has a positive effect on firm value, Profitability, dividend policy, and capital structure together have a positive effect on firm value Keywords: Profitability, Dividend Policy, Capital Structure, Profitability, Corporate Value