Abstract
This study shows the effect of the company micro fundamental factors on the company value registered in the LQ 45 Index (2012-2016). Company value is paid by prospective investors when a company is sold. The company is projected using the Tobin's Q ratio. The company micro fundamental factors in this study are Current Ratio, Debt to Equity Ratio, Return on Assets, and Earning per Share. Current Ratio is used to measure the ability of a company to fulfill its short-term obligate ions. Debt to Equity Ratio is used to assess the debt with equity that reflects the ability of a company to fulfill its obligations. Return on Assets is used to measure the ability of company to generate profits with assets used. Earnings per share is used to measure the achievement of the management in Achieving profits for shareholders. The design of this study is panel data regression using EViews 9 program. The analysis of the data in this study is the F Test for simultaneous and correlation tests (Adjusted R-Square). In this study, Debt to Equity Ratio and Return on Assets have positive and significant effect on the company's value (Tobin's Q). Earning per Share has a negative and significant effect on company value (Tobin's Q). Current ratio has no significant negative effect on company value (Tobin's Q). Simultaneously, Current Ratio, Debt to Equity Ratio, Return on Assets, and Earning per Share has significant impact on company value (Tobin's Q) with adjusted R-Square 0.972082. T means Tobin's Q 97.2082% can be explained from the combination of the four independent variables.
Highlights
In addition to generating profits, the main goal to be achieved by the company is to impose company value (van Binsbergen et al, 2011)
Effect of Leverage Ratio (DER) on the Profitability of Corporate Values (Tobin’s Q) Partially The regression test results partially show Leverage negative and significant influence on Corporate Value (Tobin’s Q), this is shown from the results of t test with a value of t count of 3.193988 with a probability of 0.0021 < 0.05, from the results of the regression equation 1 obtained regression coefficient values for Leverage variable is negative at 1.728440, meaning that partial leverage has a significant effect on Corporate Value (Tobin’s Q) inLQ 45 indexed companies listed on the Indonesia Stock Exchange, this has implications for changes in Corporate Value (Tobin’s Q) (Graham and Harvey, 2002; Lipson and Mortal, 2009)
Effect of Liquidity Ratio (CR), Leverage Ratio (DER), return on assets (ROA) ratio, and earning per share (EPS) Ratio, to Company Values (Tobin’s Q) Together Regression test results together showed no effect Liquidity Ratio (CR), Leverage Ratio (DER), Ratios ROA, and Ratio of Earnings Per share (EPS) jointly to Company Value (Tobin’s Q) company - LQ 45 indexed companies listed on the Indonesia Stock Exchange for the period of 2012-2016, by conducting an F test of 148,565 with α = 5% and degrees of freedom 90, having a significant effect on statistical probability 0.0000
Summary
In addition to generating profits, the main goal to be achieved by the company is to impose company value (van Binsbergen et al, 2011). Maximizing the value of the company means maximizing the present value of all profits that will be received by investors in the future or long-term oriented (Onat et al, 2014). Because the value of the company is long-term oriented, every decision making on the policies made by the company must consider the value of the company. Analysis fundamental analysis to calculate the intrinsic value of stocks using financial data firm Fundamental analysis is an analytical tool to determine the value of a company to process data sourced from internal sources, especially financial statements issued officially by the company, processed according to the needs analysis to find out the company’s financial ratios, so that the value of the financial ratio will be known about the value of a company (Marti, 2004). Shares that enter the LQ-45 Index are selected based on the level of liquidity, market capitalization and performance of the issuing
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