Abstract

The purpose of this study to determine the effect of firm size, leverage, and profitability to the value of companies in manufacturing companies listed on the Indonesia Stock Exchange (BEI) partially or simultaneously. This research tested the hypothesis that there is influence of firm size, leverage, and profitability to the value of companies in manufacturing companies listed on the Indonesia Stock Exchange (BEI). The sampling technique used was purposive sampling. The research method used is multiple linear regression statistic method.The results showed that firm size variables have no effect on firm value, leverage has no effect on firm value, profitability has positive influence to firm value. While simultaneously there is influence of firm size, leverage, and profitability to firm value with coefficient of determination (adjusted R2) obtained equal to 0,28, indicating that 28% company value can be influenced by firm size, leverage, and profitability, while side 72% The value of the company is influenced by the variables that are not examined in this research. The limitations of this study is to examine the effect of firm size, leverage, and profitability on firm value. While other variables that affect the value of the company is expected to be examined by further researchers.Keywords: Firm Size, Leverage, Profitability, Corporate Value

Highlights

  • 1.1 Research BackgroundBusiness entities are a gathering place of manpower, capital, natural resources and entrepreneurship whose purpose is to earn the maximum profit

  • The third hypothesis in this study is the profitability has a significant effect on the value of companies in manufacturing companies listed on the Indonesia Stock Exchange

  • Research Discussion 4.3.1 The size of the company significantly affects the value of the company in manufacturing companies listed on the Indonesia Stock Exchange Discussion Hypothesis size of the company significantly influence the value of companies in manufacturing companies listed on the Indonesia Stock Exchange

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Summary

Introduction

1.1 Research BackgroundBusiness entities are a gathering place of manpower, capital, natural resources and entrepreneurship whose purpose is to earn the maximum profit. It can be ascertained that the company can maintain its survival and continue to grow so as to provide a profitable return for its owners in the welfare of the owners and employees / workers who are in it. The value of a company is the perception of investors in funding a company with consideration of the value of time and money against companies that are often associated with stock prices. The higher the stock price, the higher the shareholder wealth, maximizing shareholder wealth means that management must maximize the present value of expected return in the future. The size of a company is a symbol of a company's size. An established company will have easy access to the capital market to raise funds at a lower cost, while new and small companies will have many difficulties accessing the capital market

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