Academy of Accounting and Financial Studies Journal (Print ISSN: 1096-3685; Online ISSN: 1528-2635)

Abstract

The Determining Factors of Corporate Value: Empirical Study of Food and Beverage Companies Listed on the Indonesia Stock Exchange

Author(s): Suparno, Suhono, Nahrudien Akbar M., Madjidainun Rahma

This study aims to analyze and provide empirical evidence that the independent variables of investment decisions, capital structure and profitability, either partially or simultaneously affect firm value. Investment Decision Variable (X1) proxied (MBVA), Capital structure (X2) proxied by Debt Equity Ratio (DER), Profitability Variable (X3) proxied by Return On Equity (ROE) and Firm Value (Y) proxied by Price To Book Value (PBV). This type of research uses explanatory research with a quantitative approach, the population in this study is all food and beverage sub-sector manufacturing companies listed on the Indonesia Stock Exchange for the period 2014-2018. With a purposive sampling technique with a sample size of 10 companies. The data obtained were analyzed by testing the validity of the data, multiple linear regression analysis. The results of this study indicate that investment decisions have a positive and significant effect on firm value, capital structure has a positive and significant effect on firm value and profitability has a positive and significant effect on firm value, and together the variables have a positive and significant effect on firm value. This finding is interesting, that the success of increasing the value of the company depends on the company's ability to maximize its resources, and in implementing established company policies.

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