The Effect of Company Size and Profitability to the Firm Value with Dividend Policy as Intervening Variable: Case Study on Food and Beverages Companies Listed in Indonesian Stock Exchange (IDX) 2012-2016 period

Abstract

This study aims to examine the effect of firm size and profitability on company value through dividend policy of Food and Beverages company. The population of this study are Food and Beverages companies listed on the Stock Exchange during 2012-2016. The sampling technique used is purposive sampling, so that obtained by 8 companies of Food and Beverages which fulfill criteria as research sample. Statistical method used is partial test and path analysis to test the influence directly or indirectly company size and profitability to company value through dividend policy. The test results show that firm size has no significant effect on dividend policy and profitability have significant negative effect to dividend policy. Firm size and profitability have a significant positive effect on firm value, and dividend policy has significant negative effect to firm value. These results suggest that dividend policy mediates the effect of firm size and profitability to the firm value.