The Influence of Profitability and Liquidity on Firm Value with Dividend Policy as a Moderating Variable Indonesia Emerging Market: Conceptual Review

DOI

10.2991/978-94-6239-811-5_39How to use a DOI?

Keywords

Dividend Policy; Firm Value; Liquidity; Profitability

Abstract

This study aims to develop a theoretical model that explains how a company’s profit and cash flow affect its overall worth, with the dividend strategy playing a role in this relationship. The method employed uses a detailed conceptual model that brings together previous research to help build and assess the model. The Return on Assets (ROA) metric indicates how lucrative a firm is. The Current Ratio (CR) checks for cash. The Price-to-Book Value (PBV) metric determines how much a firm is valued, while the Dividend Payout Ratio (DPR) indicates how much it pays out in dividends. The findings indicate that a company’s worth increases when it produces a lot of money. This is because purchasers believe that a profitable firm is performing well and has promising future potential. Having adequate cash on hand demonstrates that a company can pay its payments on time and maintain financial stability, increasing its value. Furthermore, the dividend strategy helps build a stronger link between profitability, liquidity, and the company’s value because paying dividends regularly makes investors more confident. As a result, this theoretical model provides an academic contribution to understanding how these elements interact and sets the stage for further research.

Copyright

© 2026 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Sri Muryani
AU  - Sri Hermuningsih
AU  - Riskin Hidayat
PY  - 2026
DA  - 2026/10/29
TI  - The Influence of Profitability and Liquidity on Firm Value with Dividend Policy as a Moderating Variable Indonesia Emerging Market: Conceptual Review
BT  - Proceedings of the International Conference on Business, Economic, and Social Sustainability (ICOBES 2026)
PB  - Atlantis Press
SP  - 493
EP  - 502
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6239-811-5_39
DO  - 10.2991/978-94-6239-811-5_39
ID  - Muryani2026
ER  -