PENGARUH KINERJA KEUANGAN DAN UKURAN PERUSAHAAN TERHADAP NILAI PERUSAHAAN PADA PERUSAHAAN LQ45

Abstract

This research aimed to examine the effect of financial performance, which was measured by profitability ratio, leverage, liquidity, and market on firm size by using financial ratios. The population was 100 LQ45 index companies during 2013-2016. Moreover, the data collection technique used purposive sampling. Inline with that, there were 25 companies as the sample. Furthermore, the data analysis technique used multiple linear regression. The result concluded that profitability had a positive effect on firm value. It meant the higher the company’s profit was, the bigger the opportunity to interest the investors in investing their money would be. However, leverage had negative effect on firm value. The higher the company risk was, the worse signal from the investors would be. Consequently, affected firm value. Likewise, liquidity had a negative effect on firm value. Even, if the company could not fulfill its obligation, the firm value would be lowered. In contrast, the market had a positive effect on firm value since it became an indicator to define which stocks had a bigger opportunity of getting big profits; before the investors invested the capital. Similarly, firm size had a positive effect on firm value. This meant, bigger companies tended to have better control over the market condition and became a positive signal for investors.