Abstract
This study aims to examine the effect of Total Asset Turnover, Debt to Equity Ratio, Current Ratio, and Return On Equity on firm value. This type of research includes causal research using quantitative methods. The population in this study are all manufacturing companies listed on the Indonesia Stock Exchange, as many as 183 companies. This technique is based on specific criteria estimated to be related to this study's previously known population and needs. So the total sample for this research is 48 data from 16 companies during 2018- 2020. Secondary data was collected through the Indonesia Stock Exchange website and analyzed using Multiple Regression Analysis with the Ordinary Least Square model using the Eviews Version 12 software. The results found that Total Asset Turnover (TATO) has a negative and insignificant effect on firm value, Debt to Equity Ratio (DER) has a negative and significant effect on firm value, Current ratio (CR) has a positive and insignificant effect on firm value. In contrast, Return On Equity (ROE) has an insignificant effect on firm value. Positive and significant to the value of the company.
Highlights
The purpose of companies that have gone public is to increase the wealth of the owners or shareholders by increasing the company's value (Ahmad et al, 2018)
Testing the first hypothesis (H1) in this study found that total asset turnover (TATO) is insignificant to firm value
Testing the first hypothesis indicates that total asset turnover (TATO) is insignificant to firm value
Summary
The purpose of companies that have gone public is to increase the wealth of the owners or shareholders by increasing the company's value (Ahmad et al, 2018). The higher the stock price, the higher the value of the company. The wealth of shareholders and companies is reflected in the market price of shares, which reflects investment decisions, financing, and asset management (Nurwanah et al, 2021). (Asma and Redawati, (2018) stated that optimization of company value could be achieved through good corporate governance and optimal implementation of financial management functions (Ahmad et al, 2018). One financial decision will affect other choices and impact firm value (Hasanuddin et al, 2021). The better the company's value will be seen as valuable information by potential investors
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