PENGARUH PROFITABILITAS, LEVERAGE, DAN PERTUMBUHAN PERUSAHAAN TERHADAP NILAI PERUSAHAAN

Abstract

This research aims to determine the effect of profitability, leverage, and firm growth on the firm value. Profitability was referred to as Return on equity (ROE), leverage was referred to as Debt to equity ratio (DER), and firm growth was referred to the Total asset growth (TAG), Furthermore, the population consists of Pharmaceutical companies listed on the Indonesia Stock Exchange (IDX) during 2019-2023. The data collection technique used purposive sampling. In line with that, 9 companies were taken as the samples. Moreover, the data analysis technique used multiple linear regressions. The result indicates that: (a) profitability has a positive effect on the firm value. This shows that investors can consider the company's profitability when making an investment decision; (b) leverage does not affect the firm value. It means that investors do not pay much attention to whether a company has a lot of debt or relies more on equity in its funding when having investment decision; and (c) firm growth does not affect the firm value, which shows that investors do not respond positively when the growth only in a form of expansion without improving financial performance in having the investment decisions.