PENGARUH KINERJA KEUANGAN TERHADAP NILAI PERUSAHAAN PADA PERUSAHAAN SUB SEKTOR FARMASI

Abstract

This research aimed to examine the effect of profitability, liquidity, and solvability as the independent variable on the firm value as the dependent variable. Furthermore, the profitability was proxy with return on asset, liquidity was proxy with current ratio and the Solvability was proxy with debt to equity ratio on the firm value was proxy with price to book value. This research was quantitative. Furthermore, the research population was the pharmaceutical industry sub-sector listed on The Indonesia Stock Exchange in the 2015-2020 period. Moreover, the research sample collection technique used a purposive sampling method based on determined criteria. Based on the purposive sampling method, obtained 8 companies as the sample. On the other hand, the research analysis method used multiple linear analyses. The research result concluded that (1) Return on assets had a positive and significant effect on the firm value, therefore the first hypothesis was accepted. (2) Current ratio did not significantly affect the firm value, therefore the second hypothesis declined. (3) Debt to equity ratio had a positive and significant effect on the firm value, therefore the third hypothesis was accepted. It showed that the debt to equity ratio owned by the compan had affected the firm value.