Determinan Nilai Perusahaan Publik Manufaktur Sektor Industri Barang Konsumsi 2015-2019

Abstract

This research examines several determinants that may have effect to firm value of the consumer goods manufacturing sector in Indonesia in 2015-2018, proxied with Price to Book Value (PBV). The factors that are thought to to have effect against firm value are Price Earning Ratio (PER) which shows potential future profits and investment choices, financial leverage (DER) which reflects the comparison between source of firm’s funding, Dividend Payout Ratio (DPR) which is a factor that attracts investor interest, and Return on Equity (ROE) which reflects the ability of the firm to generate net income from its equity. This research is important because firm value is a reflection of the shareholder’s welfare. The study reveals that DER negatively and significantly influence the PBV, as well as significant effect of all other independent variables simultaneously on PBV.
 
 Keywords: Firm Value, financial leverage, Dividend Payout Ratio, Price Earning Ratio, Return On Equity.

Firm Value Analysis in Indonesia Manufacturing Companies

“…The high potential for dividends to be distributed will cause investors to be interested and investor demand for company shares will increase and share prices will also increase, causing an increase in the value of PBV, which will affect the increase in firm value. Hertina et al (2019), Adityaputra and Ariyanto (2020) and Dewi and Suryono (2019) found that DER has a negative effect on firm value. Contrary, Setiawan et al (2021) argued that DER has a positive influence on firm value.…”

“…If the company is managed optimally, then this PBV ratio will show a value above 1 (one), which means the market value of the shares exceeds the book value. By observing PBV, management can find out how investors respond to company performance and future prospects for the company (Adityaputra and Ariyanto, 2020). This ratio is also used to measure the level of overvalued or undervalued stock prices.…”

“…In this study, dividend policy is measured by the Dividend Payout Ratio (DPR). The DPR ratio measures the number of dividends per ordinary share outstanding which will be distributed to shareholders compared to its earnings per share (Adityaputra and Ariyanto, 2020). Investors with the main goal of long-term investment will pay attention to this ratio because their investment expectation is a return in the form of dividends.…”

“…Companies with a low DER value indicate that the majority source of entity funding comes from shareholder contributions and retained earnings compared to loans. Thus, the company's responsibility to external parties is generally in the form of interest expenses and loans will be low (Adityaputra and Ariyanto, 2020). This low capital cost will cause the entity's profit to increase which will ultimately increase the retained earnings and equity of the company so that the potential profits distributed in the form of dividends become higher.…”