THE EFFECT OF PROFITABILITY AND DIVIDEND POLICY ON FIRM VALUE DURING THE POST-PANDEMIC RECOVERY PERIOD: EMPIRICAL EVIDENCE FROM FOOD AND BEVERAGE COMPANIES IN INDONESIA

Abstract

Firm value represents the market's assessment of a company's current condition and future prospects. Previous research has yielded conflicting findings regarding the influence of dividend policy on firm value. This study aims to examine the impact of profitability and dividend policy on the firm value of companies in the food and beverage (F&B) sub-sector listed on the Indonesia Stock Exchange for the 2022–2024 period. Employing a quantitative approach with secondary data and a purposive sampling technique, the study includes a sample of 24 companies, resulting in 72 observations. The variables utilized are Return on Assets (ROA) to measure profitability, the Dividend Payout Ratio (DPR) for dividend policy, and the Price-to-Book Value (PBV) ratio for firm value. Data analysis was conducted using multiple linear regression. The results indicate that profitability has a positive and significant effect on firm value, whereas dividend policy does not have a significant impact. Together, these factors exert a substantial influence, with an R² value of 47.2%. This study provides an empirical contribution by updating evidence on the factors that influence firm value during the post-pandemic economic recovery era.