Role of Dividend Policy in Relation to Profitability, Liquidity and Firm Value in Non-Financial Companies in Indonesia

Good corporate value is a company achievement to increase shareholders' wealth. Investors use financial statements as one of the information to assess whether investment is feasible or not. The purpose of this study is to look at the role of dividend policy as a mediating variable between the relationship of profitability, liquidity and firm value. The population in this study was 463 non-financial companies listed on the Stock Exchange in 2014-2017 with a sample of 56 companies. The researcher used panel data regression as a data analysis technique.The results of the study show the effect of profitability, liquidity, dividend policy on firm value have a positive significant effect. In addition, profitability and liquidity influence the value of the company better if through dividend policy. This research contributes to the importance of dividend policy in relation to profitability, liquidity, and firm value for investors to make their investment decisions.