The Effect of Profitability on Dividend Policy and Firm Value: A Case Study of Indonesian Manufacturing Company


  • Bambang Widjanarko Susilo Postgraduate Program of University Malang Indonesia
  • Grahita Chandrarin Postgraduate Program of University of Merdeka Malang Indonesia
  • Prihat Asih Postgraduate Program of University of Merdeka Malang Indonesia



Profitability, Dividend Policy, Firm Value


This research was conducted to examine the effect of profitability on firm value through the dividend policy of manufacturing companies listed on the IDX for the 2015-2018 period. The analysis was carried out using secondary data, namely financial reports on the Indonesian Stock Exchange. The technique used in sampling is purposive sampling. The number of samples obtained was 27 manufacturing companies. The analysis technique uses path analysis. The results of the analysis show that profitability has a positive (significant) effect on dividend policy, dividend policy has an effect on firm value, and dividend policy no effect mediate between profitability and firm value.


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How to Cite

Bambang Widjanarko Susilo, Grahita Chandrarin, & Prihat Asih. (2021). The Effect of Profitability on Dividend Policy and Firm Value: A Case Study of Indonesian Manufacturing Company. International Journal of Advances in Scientific Research and Engineering (IJASRE), ISSN:2454-8006, 7(8), 70–76.