The Effect of Profitability and Liquidity on Firm Value with Dividend Policy as an Intervening Variable (Empirical Study on Non-Cyclical Consumer Sector Companies Listed on the Indonesia Stock Exchange Period 2018-2023)

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Discussion

Empirical study reports significant roles of profitability and dividend policy in influencing firm value among non-cyclical companies.

Profitability positively influences firm value, indicating better earnings can enhance market perception and worth.
Liquidity negatively affects firm value, suggesting that poor cash flow might diminish investor confidence and firm worth.
Analysis utilized purposive sampling on 24 companies from the Indonesia Stock Exchange during 2018-2023, applying multiple statistical techniques.
Dividend policy effectively mediates the relationship between profitability and firm value, though it does not do so between liquidity and firm value.

Marchelina et al. (2025) studied this question.

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