JEFMS Journal

ABSTRACT:

This study aims to determine and analyze the effect of profitability, capital structure and investment decisions on leverage and firm value in FnB Sector companies listed on the Indonesia Stock Exchange in 2017-2019. The population of this study are all FnB companies listed on the IDX in 2017-2019 with a total of 26 companies. The sample technique is purposive sampling with the criteria for the availability of company financial statements up to 2019 and positive profitability, obtained a sample of 13 companies. The data analysis technique used statistical description and path analysis. The results showed that there was no significant effect between profitability, capital structure, investment decisions and leverage on firm value. Profitability and investment decisions have a significant effect on leverage.

KEYWORDS:

profitability; capital structure; Investation decision; leverage; the value of the company

REFERENCES:

1) Abidin, Z., Yusniar, M. W., & Ziyad, M. (2014). Effect of Capital Structure, Dividend Policy and Size on Firm Value (Study on Property Companies on the Indonesia Stock Exchange). Journal of Management Insights, 2(3), 91–102.

2) Astakoni, I. M. P., & Wardita, I. W. (2020). Investment Decision, Leverage, Profitability, and Company Size as Determinants of Manufacturing Company Value. ECONOMIC DISCUSSION (Journal of Economics, Business and Accounting), 19(1), 10–23. https://doi.org/10.22225/we.19.1.1576.10-23

3) Brigham, E. F., & Houston., J. F. (2010). Fundamentals of Financial Management. Edition 11. Salemba Four.

4) Dewi, I. R., Handayani, S. R., & Nuzula, N. F. (2014). Effect of Capital Structure on Firm Value (Study on the Mining Sector Listed on the IDX for the period 2009-2012). Journal of Business Administration S1 Universitas Brawijaya, 17(1), 85090.

5) Dewi, K., & Sulistiyo, H. (2020). The Effect of Profitability, Leverage, and Investment Decisions on Firm Value (Empirical Study of Mining Companies on the Indonesia Stock Exchange 2015-2018). Scientific Journal of Management Economics Students, 4(3), 602–614. http://www.jim.unsyiah.ac.id/EKM/article/view/15415/pdf

6) Dewi, P. Y. S., Yuniarta, G. A., & Atmadja, A. W. T. (2014). The Effect of Capital Structure, Company Growth and Profitability on Firm Value in Lq 45 Company in the Period of 2008-2012. E- Journal S1 Ak Ganesha University of Education, 2(1), 1–10.

7) Efendi, M. F., & Idayati, F. (2020). The Influence of Firm Size, Leverage, and Investment Decisions on Firm Value. Journal of Accounting Science and Research, 9(10), 1–17. http://jurnalmahasiswa.stiesia.ac.id/index.php/jira/article/view/2771/2780

8) Fahmi, I. (2012). Financial Performance Analysis. Alphabet.

9) Gultom, R., & Wijaya, S. W. (2013). Analysis of Factors Affecting the Value of Pharmaceutical Companies on the Indonesia Stock Exchange for the period 2008-2011. Journal of Microskilled Economics Wira, 3(1), 51–60.

10) Gumanti, Tatang A. (2011). Investment Management, Concepts, theory and Applications. Media Discourse Partners.

11) Halim, A., Basri, H., & Faisal. (2016). The Effect of Intellectual Capital on Profitability and Its Impact on Stock Prices of Financial Sector Companies Listed on the Indonesia Stock Exchange (IDX). Journal of Business and Economics (JBE), 23(2), 124–141.

12) Hamidy, R. R., Gusti, I., Wiksuana, B., Gede, L., & Artini, S. (2015). Effect of Capital Structure on Firm Value with Profitability as an Intervening Variable in Property and Real Estate Companies on the Indonesia Stock Exchange. E-Journal of Economics and Business Udayana University, 10, 665–682.

13) Ilhamsyah, F. L., & Soekotjo, H. (2017). The Influence of Dividend Policy, Investment Decision, and Profitability on Firm Value. Journal of Management Science and Research, 6(2), 4. http://jurnalmahasiswa.stiesia.ac.id/index.php/jirm/article/download/720/730/

14) Jufrizen, & Asfa, Q. (2015). _____ EFFECT OF PROFITABILITY AND DEBT POLICY ON COMPANY VALUE ON PHARMACEUTICAL COMPANIES LISTED ON THE INDONESIA STOCK EXCHANGE PERIOD 2010-2013_ __ __ ___ ___ _ __ __ _______ _____ ___ _ __ ___ _. Journal of Business Management Studies, 4(2).

15) Kartini, R. D., & Apriwenni, P. (2017). Impact of Tax Planning, Debt Policy and Dividend Policy on Firm Value. Journal of Accounting, 6(1), 47–67.

16) Cashmere. (2010). “Financial Report Analysis”, Edition I. Rajawali Press.

17) Kurniasari, I. (2015). The Influence of Intellectual Capital and Profitability on Firm Value in Lq45 Companies Listed on the Indonesia Stock Exchange 2011-2013 Period. Journal of Auditing and Accounting, Faculty of Economics, Tanjungpura University, 4(1), 23–40.

18) Manoppo, H., & Arie, F. (2016). The Effect of Capital Structure, Company Size and Profitability on the Value of Automotive Companies Listed on the Indonesia Stock Exchange for the Period 2011-2014. Journal of Economic Research, Management, Business and Accounting, 4(2), 485–497. https://doi.org/10.35794/emba.v4i2.13082

19) Mas'ud, M. (2008). Capital Structure Against Company Value. Journal of Management and Business, 7(1). https://doi.org/10.24123/jmb.v7i1.122

20) Mudjijah, S., Khalid, Z., & Astuti, D. A. S. (2019). Effect of Financial Performance and Capital Structure on Firm Value Moderated by Firm Size Variables. Journal of Accounting and Finance, 8(1), 41–56.

21) Mulyadi, R. (2016). THE EFFECT OF PROFITABILITY RATIO ON PERFORMANCE ASSESSMENT OF ALTMAN'S Z-SCORE MODEL IN PHARMACEUTICAL COMPANIES IN THE INDONESIA STOCK EXCHANGE (IDX). Journal of Accounting, 3(1), 1–21.

22) Nainggolan, S. DA, & Listiadi, A. (2014). The Influence of Debt Policy on Firm Value with Dividend Policy as a Moderating Variable. Journal of Management Science, 2(3), 868.

23) Pamungkas, H. S., & Puspaningsih, A. (2013). The effect of investment decisions, funding decisions, dividend policy and firm size on firm value. Indonesian Journal of Accounting & Auditing, 17(2), 155–164. https://doi.org/10.20885/jaai.vol17.iss2.art6

24) Pasaribu, D., & Tobing, D. N. L. (2017). ANALYSIS OF THE EFFECT OF CAPITAL STRUCTURE, PROFITABILITY, DIVIDEND POLICY AND COMPANY SIZE ON COMPANY VALUE IN PHARMACEUTICAL COMPANIES LISTED ON THE INDONESIA STOCK EXCHANGE. JOURNAL OF ACCOUNTING AND METHODIC FINANCE, 1(1), 32–349.

25) Pasaribu, M., Topowijono, T., & Sulasmiyati, S. (2016). The Effect of SM, SK and Profitability on Company Value in Basic and Chemical Industry Sector Companies Listed on the Indonesia Stock Exchange in 2011-2014. Journal of Business Administration S1 Universitas Brawijaya, 35(1), 154–164.

26) Prasetyorini, B. F. (2013). Effect of Firm Size, Leverage, Price Earning Ratio and Profitability on Firm Value. Journal of Management Science, 1(1), 183–196. https://ejournal.unesa.ac.id/index.php/jim/article/view/1505

27) Putra, I. M. G. D., & Dana, I. M. (2016). THE INFLUENCE OF PROFITABILITY, LEVERAGE, LIQUIDITY AND COMPANY SIZE ON STOCK RETURNS OF PHARMACEUTICAL COMPANIES IN BEI. Udayana University Management E-Journal, 5(11), 6825-6850 ISSN: 2302-8912.

28) Qomariah, N. (2015). The Effect of Corporate Social Responsibility, Size, and Profitability Toward On the Value of Corporate. Journal of Business and Management, 17(2), 25–30. https://doi.org/10.9790/487X-17212530

29) Rai Prastuti, N., & Merta Sudiartha, I. (2016). Effect of Capital Structure, Dividend Policy, and Firm Size on Firm Value in Manufacturing Companies. E-Journal of Unud Management, 5(3), 254202.

30) Rakhimsyah, L. A., & Gunawan, B. (2011). The Influence of Investment Decisions, Funding Decisions, Dividend Policy and Interest Rates on Company Value. Journal of Investments, 7(1), 31–45.

31) Ramadhitya, G. K., & Dillak, V. J. (2018). THE INFLUENCE OF PROFITABILITY, LEVERAGE, FIRM SIZE AND INVESTMENT DECISION TOWARD FIRM VALUE (Case Study on Food and Beverage Sub-Sector Manufacturing Companies Listed on the Indonesia Stock Exchange for the Period 2012-2016). e-Proceedings of Management, 5(3), 3589–3597.

32) Ross, S. A., Westerfield, R. W., & Jordan, B. D. (2008). Corporate Finance Fundamentals. McGraw Hill International.

33) Sartini, L. P. N., & Purbawangsa, I. B. A. (2014). The Influence of Investment Decisions, Dividend Policy, and Funding Decisions on the Value of Manufacturing Companies on the Indonesia Stock Exchange. Journal of Management, Business Strategy and Entrepreneurship, 8(2), 81–91.

34) Sudana, I. M. (2017). "Financial Management Theory and Practice". Airlangga University Press.

35) Sudaryo, Y., & Pratiwi, I. Y. (2016). Effect of Capital Structure and Liquidity on Profitability and Its Impact on Financial Performance. Indonesian Journal of Developing, 2(1), 1412–6907.

36) Sugiyono. (2017). Quantitative, Qualitative, and R&D Research Methods. Alphabet.

37) Sumarauw, J., Mangantar, M., & Rumondor, R. (2015). The Influence of Capital Structure, Company Size and Company Risk on Firm Value in the Plastics and Packaging Sub-Sector in Bei. Journal of Economic Research, Management, Business and Accounting, 3(3), 159–169. https://doi.org/10.35794/emba.v3i3.9338

38) Surmadewi, K. Y. N., & Saputra, D. G. D. I. (2019). Effect of Liquidity, Leverage, and Profitability on Firm Value in Pharmaceutical Companies. E-Journal of Economics and Business Udayana University, 6, 567–593. https://doi.org/10.24843/eeb.2019.v08.i06.p03

39) Tanaya, J. C., & Wiyanto, H. (2022). The Influence of Investment Decisions, Company Size, and Leverage on the Value of Mining Companies. Journal of Managerial and Entrepreneurship, 4(2), 389. https://doi.org/10.24912/jmk.v4i2.18237

40) Trang, I., Murni, S., & Pantow, M. S. (2015). Analysis of Sales Growth, Company Size, Return on Assets, and Capital Structure on Company Values Recorded in the Lq 45 Index. Journal of Economic Research, Management, Business and Accounting, 3(1), 961–971. https://doi.org/10.35794/emba.v3i1.7801

41) Warouw, C., Nangoy, S., & Saerang, I. S. (2016). The Effect of Working Capital Turnover and Profitability on Firm Value in Pharmaceutical Companies on the Indonesia Stock Exchange. Scientific Journal of Efficiency, 16(2), 366–375.

42) Wijaya, D. (2017). "Financial Management Concepts and Applications". Grasindo.

43) Wulandari, A. A., Ramantha, I. W., & Wirakusuma, M. G. (2016). The Impact of Profitability Moderation on the Effect of Corporate Social Responsibility on the Value of Manufacturing Companies. E-Journal of Economics and Business Udayana University, 5(7), 1889–1918.