PENGARUH PROFITABILITAS, LIKUIDITAS, DAN AGENCY COST TERHADAP NILAI PERUSAHAAN

Abstract

This research aimed to examine the effect of profitability, liquidity, and Agency Cost on firm value. The research was quantitative. Moreover, the population was Healthcare companies listed on Indonesia Stock Exchange (IDX) 2016-2020. The data collection technique used purposive sampling, with 8 companies as the sample. Furthermore, the data analysis technique used multiple linear regression. The result concluded that profitability had a negative impact on firm value. It showed that profitability increased and the firm value decreased. This happened as the increase of profitability did not affect investors to invest their money due to unstable economics. Therefore, it involved investors’ psychological and caused investment decision- making. Liquidity had a positive effect on firm value. It meant, that the higher the liquidity was, the higher the firm value would be. This happened since companies with better liquidity would bring a positive signal to the investor; as they had fulfilled their short-term obligations. Agency Cost had a positive effect on firm value. It showed that as the Agency Cost rose, the firm value also rose. This happened since the trust from investors increased because of Agency Cost. As a result, they were interested in investing their capital, and the firm value increased then.