THE EFFECT OF LEVERAGE, CASH FLOW, AND PROFITABILITY ON FIRM VALUE WITH DIVIDEND PAYOUT AS MODERATING VARIABLE (EMPIRICAL STUDY OF CONSUMER GOODS INDUSTRY LISTED ON INDONESIA STOCK EXCHANGE)
Firm value is very important because high corporate value will be followed by higher shareholder wealth. The higher the stock price, the higher the company value, to achieve company value in general, investors leave their management to professionals. This study aims to determine the effect of leverage, operating cash flow, and profitability on firm value with dividend policy as a moderating variable. The population in this study are all primary consumer goods sector companies listed on the Indonesia Stock Exchange (IDX) for the 2016-2021 period. The method of determining the sample is purposive sampling. The analysis technique used is multiple linear regression analysis which is processed with the Stata 16 application. The results of the study found that simultaneously leverage, operating cash flow, profitability, and dividend payout have an effect on firm value. While partially it was found that 1) Leverage has no effect on firm value, 2) Operating cash flow has a positive effect on firm value, 3) profitability has a positive effect on firm value. 4) Dividend payout is able to strengthen the effect of leverage and profitability on firm value. Conversely, it is not able to strengthen the effect of operating cash flow on firm value. This means that high profitability and leverage can provide added value to the company, which is reflected in the increase in share value.
Leverage, Cash Flow, Profitability, Firm Value, Dividend Policy