The Indirect Effect of Liquidity and Activity on Company Value with Profitability as an Intervening Variable

The infrastructure sector has a strategic role as a wheel of regional to national development to drive the country's economic growth. Although as a driving force of development, the value of Infrastructure sector companies listed on the Indonesia Stock Exchange for the 2018-2022 period has decreased significantly. This study aims to determine the role of profitability as an intervening variable from the indirect effect of liquidity and activity on the value of Infrastructure sector companies listed on the Indonesia Stock Exchange for the 2018-2022 period, with a population of 11 companies according to the specified characteristics. Sample selection using the saturated sample method. The research design is a causality study with a data analysis method using panel data regression analysis. The results of the study directly show that liquidity has no effect on company value, activity has a negative and significant effect on company value, and profitability has a positive and significant effect on company value. for liquidity and activity on profitability, the research results are that liquidity has no effect on profitability, while activity has a positive and significant effect on profitability. Furthermore, for the results of the study on the indirect effect of liquidity and activity on the value of the Company with profitability as an intervening variable, it was found that indirectly liquidity does not affect the value of the Company while activity indirectly has a positive and significant effect on the value of the Company, with profitability as an intervening variable.