The purpose of this study is to explain the effect of liquidity, leverage, and
company size on dividend policy with profitability as an intervening variable.
Data analysis was performed on manufacturing companies listed on the Indonesia
Stock Exchange during the period 2015 - 2018. The sample of this study were 35
companies selected using the purposive sampling method. The results of data
analysis using two-stage regression analysis show that liquidity and company size
have positive and significant effects on profitability, leverage has a negative effect
and is not significant on profitability. While profitability and company size have a
positive and significant effect on dividend policy, liquidity and leverage have a
positive and not significant effect on dividend policy. Meanwhile profitability is
able to mediate liquidity and company size on dividend policy, but profitability is
also not able to mediate the leverage of dividend policy.