Abstract

The purpose of this research is to analyze the effect of dividend policy and company size on profitability and company value of consumer goods company in Indonesia Stock Exchange (IDX). The population of this research is consumer goods companies in Indonesia Stock Exchange in the year of 2014-2016 amounted to 45 companies. Sampling is done by saturation sampling method in which all members of population are used as sample. The data analysis of this research uses method of structural equation added by PLS (Partial Least Square) approach. The result of the research shows that dividend policy has negative effect on profitability, while company size does not give any effect on profitability. Dividend policy, company size and profitability variable have an effect on company value. Profitability can not mediate the effect of dividend policy on company value but it can mediate the effect of company size on company value.

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