Implementation of Profitability on Dividend Distribution and Company Value on the Jakarta Islamic Index

This study aims to determine the effect of liquidity, profitability on firm value and dividend policy as a mediating variable (Study on the Jakarta Islamic Index 2016-2020). This type of research is descriptive quantitative research using secondary data from financial statements as a source of data collection. Focus on research related to social humanities, with a research theme focused on finance that is more specific to financial reports within the corporate scope of the 2017-2021 Jakarta Islamic index as a research topic. This research uses path analysis technique. The results of this study indicate that 1) Liquidity has a significant negative effect on dividend policy. 2) Profitability has a significant positive effect on dividend policy. 3) Liquidity has no significant negative effect on firm value. 4) Profitability has a significant positive effect on firm value. 5) Dividend policy has a significant positive effect on firm value. 6) Liquidity has a significant negative effect on firm value through dividend policy. 7) Profitability has a significant positive effect on firm value through dividend policy.