Dividend policy can make or break company value, study finds.
The study looked at how Profitability, Leverage, and Ownership Structure affect a company's value, using Dividend Policy as a mediator. They analyzed data from Food and Beverage Companies from 2017-2020. The findings were: Profitability affects Dividend Policy, but Leverage and Ownership Structure do not. Profitability affects Firm Value, but Leverage and Ownership Structure do not. Dividend Policy affects Firm Value. Dividend Policy mediates the impact of Profitability on Firm Value, but not for Leverage or Ownership Structure. Dividend Policy can change a company's value based on Profitability, but not on Leverage or Ownership Structure. This research can help companies make better policies and guide investors in their decisions.