Corporate Strategy: Dividend Policy, Ownership Structure, and Profitability as Key Determinants of Company Value

Abstract

This study investigates the mediating role of profitability in the relationship between dividend policy, ownership structure, and firm value in Indonesian non-cyclical consumer sector companies. Using purposive sampling methodology, we examined 19 non-cyclical consumer companies listed on the Indonesia Stock Exchange (IDX) during 2019-2023, resulting in 95 observations. The analysis employed PLS-SEM using WarpPLS 8.0 software. Our findings reveal that dividend policy (DPR) and ownership structure demonstrate significant positive effects on firm value (Tobin's Q). Additionally, dividend policy exhibits a significant positive influence on profitability (ROA). The mediation analysis confirms that profitability successfully mediates the relationship between dividend policy and firm value. These results provide empirical evidence supporting signaling theory and agency theory in emerging market contexts.