The Effect of Institutional Ownership, Leverage, and Profitability on Firm Value: Dividend Policy as an Intervening Variable

The existence of competition requires companies to make various efforts to maintain
the existence of the company and increase company value. The company value is
indicated by the company's stock price. The purpose of this research is to prove
empirically the effect of profitability, leverage and institutional ownership on firm
value with dividend policy as an intervening variable. The research data is
secondary data in the form of financial statement data and annual reports of
companies belonging to the manufacturing industry listed on the Indonesia Stock
Exchange for the period 2016 to 2018, totaling 138 companies. Data analysis used
path analysis. The results showed that profitability, leverage and institutional
ownership had a significant effect on dividend policy. The variables of profitability,
leverage and dividend policy are proven to have a significant effect on firm value,
while institutional ownership has no effect on firm value. The dividend policy
variable is able to moderate the effect of profitability on firm value, but it is not able
to moderate the effect of leverage and institutional ownership on firm value.
Keywords: firm value; institutional ownershiship; profitability;
leverage; dividend policy