Abstract

The reason for this study is to analyze the effect of funding decisions, profitability and liquidity on firm value in LQ45 manufacturing issuers. Annual data reports of the company from 2014 to 2019 are the data for this study. Sampling of companies using purposive sampling method. From the predetermined criteria, only 8 companies can meet the criteria as research samples. The analytical strategy used in this study is panel data regression analysis and uses the Common Effects model with R2 value of 93.87%. Output of this study to show that fund decision, profitability and liquidity are affecting towards firm value and profitability is the most affecting variable on company value.

Highlights

  • Nowadays, investment development that is booming is investing in the capital market.According to IDX Development Director Fawzi, until May 2020 total of capital market investors who invested their funds in mutual funds, stocks and applications increased by 13% from the initial 2.48 million investors to 2.81 million investors

  • The reason for this study is to analyze the effect of funding decisions, profitability and liquidity on firm value in LQ45 manufacturing issuers

  • Output of this study to show that fund decision, profitability and liquidity are affecting towards firm value and profitability is the most affecting variable on company value

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Summary

Introduction

Investment development that is booming is investing in the capital market.According to IDX Development Director Fawzi, until May 2020 total of capital market investors who invested their funds in mutual funds, stocks and applications increased by 13% from the initial 2.48 million investors to 2.81 million investors. (investasi.kontan.co.id). Investment development that is booming is investing in the capital market. According to IDX Development Director Fawzi, until May 2020 total of capital market investors who invested their funds in mutual funds, stocks and applications increased by 13% from the initial 2.48 million investors to 2.81 million investors. Indonesian capital market has a high ability to participate in the economy because of the current state of the capital market. According to Indonesia Stock Exchange’s data, the largest listed issuers are in the manufacturing industry. The manufacturing industry has a fairly large role in development due to the large capitalization of invested capital, large employment absorption, and they able to create added value from each input or basic material that is processed

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