PENGARUH PROFITABILITAS DAN SOLVABILITAS TERHADAP NILAI PERUSAHAAN PADA PERUSAHAAN SEKTOR ANEKA INDUSTRI

Abstract

This research aimed to examine the effect of profitability measured by Return On Assets and Return On Equity and solvability measured by Debt to Equity Ratio on the firm value. The population of this research used various industrial sector companies listed on Indonesia Stock Exchange in the periods 2017 until 2019. This research used causal associative research i.e. research aimed to find out the correlation between two variables or more with a quantitative approach. Furthermore, the data collection technique used secondary data, while data source obtained from the Investment Gallery of Indonesia Stock Exchange (GIBEI). The sample collection method of this research used purposive sampling. Moreover, the number of research samples used 114 observations at 38 companies during 3 years. In addition, the analysis method of this research used multiple linear regressions analysis with the application of SPSS (Statistical Product and Services Solutions). The result of this research showed that Return On Assets had a positive effect on the firm value, Return On Equity had a positive effect on the firm value and Debt to Equity Ratio had a positive effect on the firm value. Simultaneously, Return On Assets, Return On Equity and Debt to Equity Ratio had affected the firm value.
Keywords: return on assets, return on equity, debt to equity ratio, firm value