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Growing Science » Accounting » The role of internal factors in determining the firm value in Indonesia

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Accounting

ISSN 2369-7407 (Online) - ISSN 2369-7393 (Print)
Quarterly Publication
Volume 6 Issue 5 pp. 665-670 , 2020

The role of internal factors in determining the firm value in Indonesia Pages 665-670 Right click to download the paper Download PDF

Authors: Etty Puji Lestari, Diah Astuti, M. Abdul Basir

DOI: 10.5267/j.ac.2020.6.018

Keywords: Firm value, Leverage, Profitability, Company size

Abstract: There are pros and cons to the internal factors of the firm value. Some internal factors that play a role in firm value are company size, leverage, and profitability. The purpose of this study is to analyze the internal factors that influence the firm value. The research sample is all companies listed on the Indonesia Stock Exchange in 2012-2017. The dependent variable in this study is the firm value, while the independent variables are firm size, leverage, and profitability. The method used is the data panel. The results show that leverage had a negative and significant effect on firm value. In contrast, profitability and company size had a positive but insignificant effect on firm value. The results are in line with the allegation that the larger the company's size, the higher the investor's confidence in the company's ability to provide a return on investment. This evidence is in line with the allegations in the hypothesis that company size has a positive effect on its value.

How to cite this paper
Lestari, E., Astuti, D & Basir, M. (2020). The role of internal factors in determining the firm value in Indonesia.Accounting, 6(5), 665-670.

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Journal: Accounting | Year: 2020 | Volume: 6 | Issue: 5 | Views: 1897 | Reviews: 0

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