Factors Affecting The Value Of Companies (Empirical Study of Various Industrial Sector Companies on The Indonesian Stock Exchange in 2021)

Rustanti Rustanti (), Nessa Amalia Nur Safitri, Ririn Septian Rahmawati, Kharies Yoga Pratama and Ardian Prima Putra
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Rustanti Rustanti: University of Veteran Bangun Nusantara Sukoharjo
Nessa Amalia Nur Safitri: University of Veteran Bangun Nusantara Sukoharjo
Ririn Septian Rahmawati: University of Veteran Bangun Nusantara Sukoharjo
Kharies Yoga Pratama: University of Veteran Bangun Nusantara Sukoharjo
Ardian Prima Putra: University of Veteran Bangun Nusantara Sukoharjo

A chapter in Proceedings of the 2nd International Conference on Management and Business (ICOMB 2023), 2024, pp 75-84 from Springer

Abstract: Abstract The purpose of this study is to determine how the firm's 2021 valuation may be affected by the debt to equity ratio (DER), return on assets (ROA), and return on equity (ROE). Purposive sampling was used to choose 39 manufacturing enterprises from the various industries sector in 2021 to serve as the study's sample. The financial information, financial reports, and ratios available on the www.idx.co.id website for the example firms were all utilized. Multiple regression analysis was employed as the analytical method in this work. Variables are simultaneously and partially assessed at a significance threshold of 5% on stock returns using F test statistics and t statistics in hypothesis testing. In hypothesis testing, variables are partially tested using t statistics and simultaneously tested using F test statistics at a significance level of 5% on stock returns. The findings of this study indicate that a company's value is significantly influenced by its Debt to Equity Ratio (DER). In contrast, Return On Equity (ROE) and Return On Assets (ROA) have very little effect on the company's worth.

Keywords: Return On Asset (ROA); Return On Equity (ROE); and Debt to Equity Ratio (DER); value of the firm (search for similar items in EconPapers)
Date: 2024
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DOI: 10.2991/978-94-6463-402-0_9

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