Profitability and Liquidity to Increase Company Value Through Dividend Policy: A Case Study on an Infrastructure Company Listed on the Indonesia Stock Exchange for the 2019–2021 Period

Indonesia is currently working on enhancing its infrastructure to foster economic and social growth. Infrastructure covers areas such as energy, transportation, telecommunications, and non-building construction. Ongoing innovations are focused on improving accessibility and connectivity across Indonesia, including in remote regions and small islands. The infrastructure development was affected by the COVID-19 pandemic in 2019, leading to the postponement of many construction projects and a decline in economic activity. This situation is likely to influence investor confidence and, consequently, the evaluation of companies. This study aims to investigate the impact of profitability and liquidity on a company's value, with a particular focus on the role of dividend policy as an intervening factor. The study examines infrastructure companies operating between 2019 and 2021, specifically those listed on the Indonesia Stock Exchange (IDX). The study employed purposive sampling, selecting 15 companies based on predefined criteria. The research relies on secondary data from the Indonesian Stock Exchange (IDX) website. To analyze the data, the study utilizes path analysis within a Structural Equation Modeling (SEM) framework, assisted by Partial Least Squares (PLS) through SmartPLS version 4.0 software. The results reveal that profitability has a significant and positive impact on a company's value, while liquidity also exerts a significant and positive influence on company value. Furthermore, profitability indirectly affects a company's value through its impact on dividend policy, and liquidity likewise indirectly impact on a company's value by influencing its dividend policy.