The Effect of Profitability and Asset Management on Firm Value with Dividend Policy as a Moderating Variable

Indah Kusumawati; Suci Atiningsih

doi:10.63922/ijebir.v5i03.3368

Indah Kusumawati Universitas BPD
Suci Atiningsih Universitas BPD

DOI: https://doi.org/10.63922/ijebir.v5i03.3368

Keywords: Dividend Policy, Firm Value, Asset Management, Profitability

Abstract

Firm value is an important indicator of market confidence and corporate sustainability, but empirical evidence regarding the influence of profitability and asset management on firm value remains inconsistent, particularly when dividend policy is positioned as a moderating variable. This study aims to analyze the influence of profitability and asset management on firm value with dividend policy as a moderator in healthcare manufacturing companies listed on the Indonesia Stock Exchange for the 2020–2024 period. The study used a quantitative design with secondary panel data obtained from audited financial statements. The study population included all listed healthcare companies, and 90 firm-year observations were selected through purposive sampling. Variables were measured using Price to Book Value, Return on Assets, Return on Equity, Total Asset Turnover, Fixed Asset Turnover, and Dividend Payout Ratio. Data were analyzed using panel data regression and Moderated Regression Analysis with EViews. The results showed that Return on Equity and Fixed Asset Turnover had a significant positive effect on firm value, while Return on Assets and Total Asset Turnover had a significant negative effect. Dividend policy strengthens the influence of Return on Assets and Total Asset Turnover, weakens the influence of Return on Equity, and does not significantly moderate Fixed Asset Turnover. In conclusion, a company's value is determined not only by financial performance but also by how investors interpret dividend signals

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