The Impact Analysis of Dividend Policy on Profitability, Debt Policy, and Firm Value

Dividend policy is one of the critical decisions made by company management, as it can influence profitability, debt policy, and firm value. The background of this research is based on the importance of understanding the impact of dividend policy on various financial aspects of the company to assist management in making appropriate strategic decisions. The objective of this study is to analyze and evaluate how dividend policy affects profitability, debt policy, and firm value among companies listed on the Indonesia Stock Exchange. This research uses a quantitative method with a descriptive approach and regression analysis to test the hypotheses proposed. The data used are secondary data obtained from companies' annual financial reports over a specific period. The research sample was selected through purposive sampling technique, consisting of companies that regularly distribute dividends. Data analysis was conducted using statistical software to determine the relationships between the variables under study. The results indicate that dividend policy significantly influences company profitability. Additionally, dividend policy also affects debt policy, with dividend-paying companies tending to have lower debt levels. Lastly, the study found that dividend policy positively impacts firm value, as evidenced by an increase in the company's stock price. These findings provide important implications for company management in formulating effective dividend policies to enhance financial performance and firm value.