Determinant Factors of the Public Company’s Value which Listed in Indonesia Stock Exchange

Abstract

The study was conducted to evaluate and analyze the factors that influence the value of the company, using 3 (three) alternative regression models, namely the stock market value; share price to book value; and the rate of return as a proxy for company value. Using the stratified random sampling technique, 22 companies were listed on the Indonesia Stock Exchange over a 10-year period from 2009 to 2018. The appropriate panel data estimation method for analyzing the regression model in this study used the fixed effect model (FEM). Regression results show that the variable of debt to total asset (DAR), return of asset (ROA) and gross profit margin (GPM) significantly influenced the value of the company measured by price to book value (PBV) as the dependent variable. For further research has to pay attention to differences in industry characteristics and also consider to use of other variables, such as age the company and the level of risk of the company that measures with the market model, so that it is possible to get better estimation results.