The Effect of Capital Structure and Profitability on Firm Value with Dividend Policy as Intervening Variable
One of the supporting factors for economic growth of the country is the role of manufacturing sector. The manufacturing sector grows quiet fastly and it cannot be separated from the factors that influence the firm value, which is including capital structure, profitability and dividend policy. This study aims to analyze the effect of capital structure and profitability on firm value with dividend policy as an intervening variable in manufacturing companies that listed on the Indonesia Stock Exchange (IDX) The research method that used in this study is path analysis to analyze some research variables with direct and indirect effect. Population of this study are all manufacturing companies that listed on the Indonesia Stock Exchange (IDX) for the period of 2013 2017 which have the needed variables in the study, with the sample of 20 companies that selected using purposive sampling method. The research hypothesis was tested by Partial Least Square (PLS) analysis technique which processed using the SmartPLS 3 program. The results of the study show that there is an effect of profitability on firm value and the effect of profitability on dividend policy. The results also show that there is no effect of capital structure on firm value, capital structure on dividend policy, dividend policy on firm value, capital structure on firm value through dividend policy as an intervening variable, and there is no effect of profitability on firm value with dividend policy as intervening variable.