The Effect of Liquidity, Profitability, Debt, Firm Size, and Dividend Policy on Firm Value

Abstract

This study examines the effect of liquidity, profitability, debt, firm size, and dividend policy on firm value. The independent variables used are liquidity as measured by the current ratio, profitability as measured by return on assets, debt by debt ratio, firm size measured using ln total assets, and dividend policy as measured by the dividend payout ratio. The sample in this study consisted of 1,195 observations of non-financial sector companies listed on the Indonesia Stock Exchange. This study uses secondary data and a quantitative approach with multiple linear regression. The results of this study indicate that the variables of liquidity, profitability, debt, and dividend policy have a significant positive effect on firm value. Meanwhile, the firm size variable has no significant negative effect on firm value.