Analysis of Internal Factors Affecting Company Value in Indonesia
Dian Kurniawati*1 and Dhita Rahayu Gumay2
1M. Acc., Ak., CA, Perbanas Institute, Indonesia
2Perbanas Institute, Indonesia
*Corresponding Author
Dian Kurniawati
Article History
Received: 28.09.2022
Accepted: 20.10.2022
Published: 30.10.2022
Abstract: The value of the company can reflect the performance of a company because it can affect the perception of investors towards the company. The purpose of this study was to obtain empirical evidence of internal factors that affect the firm value. Internal factors include profitability, debt policy, growth, and firm size. This study investigates the relevance of firm value in companies listed as LQ45 stocks in the Indonesia Stock Exchange for the period 2018 – 2020. Data were collected from 11 companies that met the predetermined sample criteria. The results of this study empirically prove that profitability does not affect firm value. Debt policy, growth, and firm size have a significant effect on firm value.
Keywords: profitability, debt policy, growth, firm size, and firm value