Abstract
Every company, especially companies that have gone public have value. The value that is owned by the company is a perception that comes from investors to the level of achievement of the success of a company in managing various resources that are controlled and owned which is reflected in the stock price of the company in the market. This study aims to determine the effect of profitability, capital structure, company size, and dividend policy on firm value. The companies in this study are manufacturing companies listed on the Indonesian stock exchange during the period of 2015 to 2018. The population of this research is all manufacturing companies listed on the Indonesian stock exchange in 2015-2018. The research sample of 11 companies. The technique used in the sampling of this study used a purposive sampling technique. In this study secondary data was obtained from the Indonesian Capital Market Directory. Data analysis techniques using descriptive statistics and testing using the classic assumption test. Testing the research hypothesis using multiple linear regression test, simultaneous test (F test), partial test (t test), and coefficient of determination test (R2 test). The results showed that simultaneous profitability, capital structure, company size, and dividend policy significantly influence the value of manufacturing companies. Partially, profitability has a positive and significant effect on firm value, capital structure has a positive and significant effect on firm value, company size has a negative and significant effect on firm value, and dividend policy has positive and not significant effect on firm value.
Highlights
The company in order to gain the trust of investors requires hard work, especially in building good value for the company
The population in this study are all manufacturing companies listed on the Indonesian stock exchange according to the study period, namely 2015-2018
Based on the explanation in the above table, it is known that the significance value for the effect of X1, X2, X3, X4 simultaneously on Y is 0,000 F table 2.61, so it can be concluded that H1 is accepted, which means simultaneously profitability (ROE), capital structure (DER), company size and dividend policy (DPR) have a significant effect on firm value
Summary
The company in order to gain the trust of investors requires hard work, especially in building good value for the company. Companies are required to achieve maximum profits, but are expected to be able to prosper shareholders and increase the value of the company. Companies with a good level of business development in the long run will provide large profits to investors This will have an impact on increasing the value of the company. Sartono (2011) states that dividend policy is a decision whether the profits obtained by the company will be distributed to shareholders, or will be retained in order to fund investment in the future. Company value is an investor's perception of the level of success of the company in managing resources that is reflected in the company's stock price. The company expects financial managers to do the best for the company by maximizing the value of the company so that the prosperity (welfare) of owners or shareholders can be achieved (Suad, 2005)
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