Abstract :
This study aims to examine and analyze the effect of profitability (ROE) and
dividend policy (DPR) on firm value (PBV) of financial sector companies listed on
the Indonesia Stock Exchange 2016-2020.
The population in this study are all financial sector companies listed on the
Indonesia Stock Exchange 2016-2020. The sample used was 10 companies and
the sample was selected using purposive sampling method. The data source is the
annual financial report downloaded through the official website of the Indonesia
Stock Exchange (www.idx.co.id). Data analysis used descriptive statistical
analysis methods, multiple linear regression analysis, classical assumption test,
and hypothesis testing using program SPSS for Windows version 25.
The results showed that: (1). Partially, profitability has a significant effect on
firm value, (2). Partially, dividend policy has no significant effect on firm value,
(3). Simultaneously, profitability and dividend policy have a significant effect on
firm value. The amount of influence given by the independent variable to the
dependent variable is 26.7%, while the remaining 73.3% is influenced by other
variables not examined in this study.