The Effect of Dividend Policy, Leverage and Liquidity on Firm Value (Study on Stock of Companies Actively Listed in LQ-45 in The Indonesian Stock Exchange (IDX) for The Period 2010-2019)

Abstract

This was a quantitative study which aims to determine the effect of Dividend Policy as measured by Dividend Payout Ratio, Leverage as measured by Debt Ratio and Liquidity as measured by Current Ratio on firm value as measured by Price to Book Value. The data used in this study were analyzed using Panel Data Regression Random Effect Model which was processed with Eviews 12. The research object used was stock of companies actively listed in LQ-45 in the Indonesian Stock Exchange (IDX) for the period 2010-2019.

The results of the study showed that: 1) Dividend Policy has no significant effect on Firm Value with a probability value of 0.9941; 2) Leverage has no significant effect on Firm Value with a probability value of 0.0968; and 3) Liquidity has a significant positive effect on Firm Value with a probability 0.0322. The R-Squared value in this study is 0.255911, it means that the contribution of all independent variables in explaining the variable is 25.59%.

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