The Effect of Return on Assets and Return on Equity on Company Value with Dividends as Intervening Variables in Manufacturing Companies in the Basic and Chemical Industry Sectors Listed on the Indonesia Stock Exchange in 2017-2020

Abstract

The purpose of this study was to determine the effect of Return On Assets and Return On Equity on Firm Value with Dividends as an intervening variable. The sampling technique used is purposive sampling method. Based on the sample selection criteria, a sample of 32 issuers was obtained with a total of 128 data. The data analysis techniques used were classical assumption test, pant analysis, multiple correlation coefficient analysis (R), coefficient of determination analysis (R2), simultaneous effect test (F test). , and simultaneous effect test (t test). Based on the classical assumption test, the data is normally distributed, there is no multicollinearity between variables, there is no autocorrelation, there is no heteroscedasticity and the data used is linear. Based on the value of R (correlation) equation 1 Return On Assets and Return On Equity have a low relationship to the Dividend variable. equation 2 between Return On Assets and Return On Equity through Dividends as an intervening variable has a moderate relationship. The coefficient of determination (R2) equation 1 is 2.1%. The effect of dividends is explained by Return On Assets and Return On Equity. Equation 2 is obtained by 29% the influence of firm value is explained by Return On Assets and Return On Equity. The results of the path analysis show that dividends mediate the return on assets variable on firm value and dividends do not mediate return on equity on firm value. The value of the F test of equation 1 Return On Assets and Return On Equity simultaneously has no significant effect on dividends. Equation 2 Return On Assets and Return On Equity through intervening variables have a significant effect on firm value. The results of the t-test of equation 1 Return On Assets and Return On Equity simultaneously have no significant effect on dividends. Equation 2 Return On Assets, Return On Equity through Dividends as an intervening variable simultaneously does not have a significant effect on firm value.