PENGARUH PROFITABILITAS, LEVERAGE, UKURAN PERUSAHAAN, DAN INVESTMENT OPPORTUNITY SET TERHADAP NILAI PERUSAHAAN

Abstract

Firm value is mostly related to stock price. Moreover, with the firm value, investors can use it as a base to evaluate its performance in the future. Therefore, they will gain profits by having higher stocks. This research aimed to examine the effect of profitability (Return On Asset), leverage (Debt to Equity Ratio), firm size, and Investment Opportunity Set (IOS) on firm value. The data collection technique used purposive sampling, with 45 companies as the sample. Furthermore, the data were taken from financial statements of consumption manufacturing companies listed on the Indonesia Stock Exchange during 2018-2021. Additionally, the data analysis technique used descriptive statistics, classical assumption tests, and hypothesis tests. The result concluded that profitability (Return On Assets), leverage (Debt to Equity Ratio), and Investment Opportunity Set (IOS) had a significant effect on firm value. However, the independent variable namely, firm size had an insignificant effect on the firm value of consumption manufacturing companies.