PENGARUH PROFITABILITAS, GOOD CORPORATE GOVERNANCE, DAN LEVERAGE TERHADAP NILAI PERUSAHAN

Abstract

This research aims to examine the effect of profitability, Good Corporate Governance and Leverage on the firm value. Profitability was measured by Return on Assets (ROA), GCG was measured by institutional ownership and a board of independent commissioners. Furthermore, Leverage was measured by Debt to Equity Ratio (DER) and firm value referred to as Price to Book Value (PBV). The study applies quantitatively. The data were secondary, in the form of financial statements and company annual reports which were in the finance sector taken from the official website of Indonesia Stock Exchange, i.e. www.web.idx.com, and the related company’s official sites. Furthermore, the data collection technique used purposive sampling. In line with that, 255 samples from 51 companies were gained during 5 years of research period. The data analysis technique used descriptive statistical analysis, classical assumption test, and multiple linear regression. The result shows profitability, independent board commissionaire, and leverage affect the firm value. On the other hand, institutional ownership did not affect the firm value. In addition, the proportion of institutional ownership is greater and does not always give a significant contribution to the firm value.