Main Article Content
Research on capital structure and dividend policy is mostly done in non-financial industries. The biggest source of bank funds is public funds collected, so that the financial structure of banks is different from non-bank companies. This study aims to examine the relationship between funding decisions, dividend policy, and the value of banking firms. Dividend policy is also influenced by the need for funds and the availability of sources of funds, so that in this study dividend policy is also tested for its role as a mediating variable of capital structure with dividend policy. The research sample is commercial banks listed on the Indonesia Stock Exchange for the period 2014-2018. The research path model was analyzed by regression and Sobel Test. The test results show that both capital structure and dividend policy affect firm value and dividend policy is able to act as a mediating variable.