The Impact of Financial Ratios and Economic ValueAdded (EVA) on the Firm Value of Multi-Finance Companies Listed on BEI (Indonesian Stock Exchange) in the Years 2015-2021

Abstract

The purpose of this research is to examine the firm value of multi-finance companies listed on the Indonesia Stock Exchange. The research focuses on two variables, namely financial ratios which include current ratio, return on assets, return on equity, and debt to equity ratio, as well as economic value added (EVA). The research hypothesis states that both variables have an impact on the firm value. In this study, sample selection was done using a quantitative approach through the collection of secondary data from Multi Finance companies listed on the Indonesian Stock Exchange (BEI) during the period of 2015-2021. Samples were selected based on these criteria, resulting in a total of 105 samples from 15 companies taken over a period of 7 years. The data used in this study was obtained from the companies' annual reports. To test the hypothesis, the statistical method used was multiple linear regression analysis. The results indicate that Current Ratio, Return on Assets, Return on Equity, and Debt to Equity Ratio have an impact on a company's value. However, the research did not find any evidence to suggest that Economic Value Added (EVA) has an impact on a company's value.