PENGARUH LEVERAGE, PROFITABILITAS, DAN LIKUIDITAS TERHADAP NILAI PERUSAHAAN

Abstract

This research examines and analyses the effect of leverage, profitability, and liquidity on the firm value of the companies included in the Kompas 100 index during 2021-2023. The research applies quantitatively. Furthermore, leverage was measured by Debt to Equity Ratio (DER), profitability was measured by Return On Assets (ROA), and liquidity was measured by Current Ratio (CR). The data analysis technique used was multiple linear regression. The result shows that leverage (DER) has a positive and significant effect on the firm value. It is in accordance with trade-off theory that explains the optimal use of debt can increase firm value through the benefits of tax shields. Besides supporting signaling theory, increasing leverage is considered a positive signal regarding the company’s growth prospects. Moreover, profitability (ROA) is proven to have a significant and positive effect on the firm value. This finding is consistent with signaling theory, which states that good financial performance is a positive signal for investors; thus, it improves market perception of the company. Meanwhile, liquidity (CR) actually shows a negative and insignificant effect on firm value. It indicates that the company’s ability to meet short-term obligations does not necessarily increase the market evaluation. Indeed, when a level of liquidity is too high, it can be seen as inefficient use of assets since it indicates idle cash.