Effect of Return on Assets, Return on Investment, Debt to Equity Ratio, and Current Ratio on Firm Value (Case Study on Manufacturing Companies in the Food and Beverage Sub-Sector Listed in the 2017-2021 Period)
1Okta Viani Harefa,
2Chandra Wijaya,
3Enda Noviyanti Simorangkir
1,2,3Universitas Prima Indonesia
https://doi.org/10.47191/jefms/v5-i7-03ABSTRACT:
The purpose of this study is to determine the effect of ROA, ROI, DER, and CR on firm value in food and beverage sub-sector manufacturing companies listed on the Indonesia Stock Exchange during 2017 – 2021. Any data required is official data from annual financial reports originating from BEI. The method in taking the sample using the method of purpose sampling. There is a test used consisting of the classical assumption test which is part of the normality test, multicollinearity test, autocorrelation test, heteroscedasticity test, panel data regression test, coefficient (R2), hypothesis (T test), hypothesis (F test). Adjusted R Square value has 41.1% influence on firm value and the rest 58.9% influenced by other variables. The results of the research are: (1) the return on assets, Return on Investment, Debt to aquity ratio variables have an effect on firm value. (2) Current ratio variable has no effect on firm value. (3) The effect of ROA, ROI, DER, CR simultaneously on firm value.
KEYWORDS:
Return On Assets; Return on Investment; Debt to Equity Ratio; Current Ratio; The value of the company.
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