PENGARUH PROFITABILITAS, RISIKO BISNIS, KEBIJAKAN DIVIDEN TERHADAP NILAI PERUSAHAAN

Abstract

Firm value is mostly related to stock price. Therefore, investors use firm value as a basis to evaluate sompanies’ performance in the future, in which they will get some profits as the firms have higher stock prices. This research airned to examine the effect of profitability (Return on Assets and Return On Equity), business risk (Degree of Operating Leverage), and dividend policy (Dividend Payout Ratio) on firm value (Price Earning Ratio). The data collection technique used purposive sampling. In line with that, there were 39 companies as samples. Moreover, the data were taken from financial statements of consumptive manufacturing companies; which were listed on Indonesia Stock Exchange during 2016-2020. Furthermore, the data analysis technique used descriptive statistics, classical assumption test, and hypothesis test. The research result concluded that return on asset had a positive effect on firm value, which could be seen in hypothesis test (t-test). Meanwhile, other independent variables namely return on equity, business risk, and dividend polivy did not affect firm value.