THE INFLUENCE OF PROFITABILITY AND STRUCTURE OF OWNERSHIP ON COMPANY VALUE WITH DIVIDEND POLICY AS AN INTERVENING VARIABLE

This study aims to test and empirically prove the effect of profitability and ownership structure
on firm value with dividend policy as an intervening variable. This research is a quantitative
research. The study was conducted on consumer goods industry companies listed on the
Indonesia Stock Exchange in 2011 to 2016. Data were collected in the form of company annual
report data from 2011 to 2016. Data analysis was performed using path analysis. The results
showed that profitability had a significant positive effect on dividend policy, while the
ownership structure had no effect on dividend policy. The company's profitability makes the
company distribute dividends to shareholders. The variable profitability and dividend policy
are proven to have a significant effect on firm value, whereas ownership structure has no effect
on firm value. Companies with the ability to make profits and distribute dividends can add value
to the company
Keywords: company value, dividend policy, ownership structure, profitability.