Determinants Of Firm Value In Indonesia Stock Exchange
Dian Surya Sampurna (a*), Erni Rohmawati (a)
a). Sekolah Tinggi Ilmu Ekonomi Indonesia
Jl. Kayujati Raya 11 A Rawamangun, Jakarta Timur 13220, Indonesia
*dian_surya_sampurna[at]stei.ac.id
Abstract
This study seeks to examine the determinants of firm value of listed manufacturing companies in Indonesia Stock Exchange (IDX) during a five-year period. The factors namely institutional ownership, firm size, profitability, leverage, and investment opportunity set. The sample was determined based on panel data, with a total sample of 144 manufacturing companies, so as many as 420 observations were obtained during the study period. The data analysis method used regression panel data. The results show size, return on assets, and market to book value of equity have a positive significant on firm value. The results also show debt to total assets have a negative significant on firm value. However, institutional ownership have a negative insignificant on firm value. The main value of this study is the identification of the factors that influence the firm value of listed manufacturing companies in Indonesia.
Keywords: institutional ownership; firm size; profitability; leverage; investment opportunity set; firm value
Topic: Corporate Finance