The Influence of Investment Decisions, Funding Decisions, and Profitability on Firm Value with Dividend Policy as an Intervening Variable

Strong financial capabilities can provide wider opportunities for companies to develop their businesses in the future. With a good image and financial condition, it becomes a magnet for investors to invest their funds in the company. The purpose of this study was to examine the effect of investment decisions, funding decisions, and profitability on firm value with dividend policy as an intervening variable. The population used in this study is a food and beverage sub-sector manufacturing company listed on the Indonesia Stock Exchange for the 2015-2020 period. The data used in this study are secondary data derived from the annual reports of food and beverage companies listed on the Indonesia Stock Exchange and published. The sampling method used a purposive sampling method so that 34 samples were obtained according to the criteria that had been determined in the study. The data analysis technique used is path analysis with SPSS version 25. The results show that investment decisions (Price Earning Ratio), funding decisions (Debt Equity Ratio) and profitability (Return On Assets) have a direct and significant effect on firm value (Price Book Value). The dividend policy (Dividend Payout Ratio) is not able to mediate or intervene in the relationship between PER and PBV. Dividend policy (Dividend Payout Ratio) is not able to mediate or intervene in the relationship between DER to PBV and dividend policy (Dividend Payout Ratio) is not able to mediate or intervene in the relationship between ROA and PBV.