The purpose of this study was to analyze the effect of liquidity, leverage,
and dividend policy on firm value with profitability as an intervening variable.
This research was conducted at banking companies listed on the Indonesia Stock
Exchange (BE/) during 2015-2019. The sample selection in this study used a
purposive sampling method and generated 21 companies that met the criteria.
Data used in this study were collected from financial reports or annual reports
published on the website www.idx.co.id. The data analysis technique used in this
study is descriptive statistics, classical assumption test, multiple linear regression
analysis and hypothesis testing. The results showed that liquidity and dividend
policy have no significant effect on profitability, while leverage has a positive and
significant effect on profitability. Then, profitability has a positive and significant
effect on firm value, while liquidity, leverage and dividend policy have no
significant effect on firm value. Meanwhile, liquidity and dividend policy have no
significant effect on firm value through profitability. However, leverage has a
significant effect on firm value through profitability.