The Effect of Profitability, Institutional Ownership on the Value of the Company with Dividend Policy as a Meditation

  • Ida Ayu Ria Paramita Handayani Economcs and Business Faculty, Udayana University, Bali, Indonesia
  • Dodik Ariyanto Economcs and Business Faculty, Udayana University, Bali, Indonesia
  • Ni Ketut Rasmini Economcs and Business Faculty, Udayana University, Bali, Indonesia
  • Anak Agung Gde Putu Widanaputra Economcs and Business Faculty, Udayana University, Bali, Indonesia
Keywords: Profitability, institutional ownership, company value, dividend policy.


This study aims to examine the effect of profitability and institutional ownership on firm value with dividend policy as a mediating variable. The data used is sourced from secondary data collected through the company's financial statements for 2014-2016. The sample used in this study amounted to 12 banking companies. Analysis of the data used in this study uses path analysis. This study obtained results that profitability affects dividend policy, institutional ownership has no effect on dividend policy, profitability affects the value of the company, institutional ownership affects the company's value and dividend policy affects the value of the company. For the results of the mediation effect test, this study obtained results that dividend policy is not a mediating variable of the effect of profitability and institutional ownership on the value of the company.


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