PENGARUH PROFITABILITAS, KEBIJAKAN HUTANG DAN KEPUTUSAN INVESTASI TERHADAP NILAI PERUSAHAAN

Abstract

This research aimed to examine the effect of profitability, debt policy, and investment decisions on the firm value of Consumption Industry companies that were listed on the Indonesia Stock Exchange. The profitability was measured by Return On Equity (ROE), debt policy was measured by Debt to Equity (DER), and investment decision was measured by Price Earnings Ratio (PER). The research was quantitative. Moreover, the data collection technique used purposive sampling, in which the sample was based on the consideration and criteria given. The population was Consumption Industry companies during 2017- 2021. Furthermore, there were 19 samples from 37 companies in the total population. The data analysis technique used multiple linear regression with SPSS 25. The research result concluded that profitability had a positive and significant impact on firm value. On the other hand, debt policy had a negative and insignificant impact on firm value. In contrast, investment decisions had a positive and significant impact on firm value.