A Systematic Literature Review: The Influence of Stock Liquidity and Dividend Policy on Firm Value in Companies Listed on the Indonesia Stock Exchange (IDX)

Lilis Marlina; Iwil Suprianto; Meli Japriani

doi:10.47134/aaem.v2i4.773

Authors

Lilis Marlina University Negeri Padang
Iwil Suprianto University Negeri Padang
Meli Japriani University Negeri Padang

DOI:

https://doi.org/10.47134/aaem.v2i4.773

Keywords:

Firm Value, Stock Liquidity, Dividend Policy, Systematic Literature Review, IDX

Abstract

The objective of this research is to systematically review the effect of stock liquidity and dividend policy regarding corporate valuation among entities traded on the Indonesia Stock Exchange (IDX). By analyzing empirical studies published between 2015 and 2024, this study highlights the most consistent determinants of firm value, the role of dividend policy (Dividend Payout Ratio, Dividend Yield), and stock liquidity (Turnover Ratio, Bid-Ask Spread) as influential factors. This review reveals that while dividend policy shows a robust beneficial correlation with corporate valuation, the effect of stock liquidity remains variable. This study contributes to a better understanding of capital market dynamics in emerging markets such as Indonesia.

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