Factors Affecting The Value Of Companies (Empirical Study of Various Industrial Sector Companies on The Indonesian Stock Exchange in 2021)

DOI

10.2991/978-94-6463-402-0_9How to use a DOI?

Keywords

Return On Asset (ROA); Return On Equity (ROE); and Debt to Equity Ratio (DER); value of the firm

Abstract

The purpose of this study is to determine how the firm's 2021 valuation may be affected by the debt to equity ratio (DER), return on assets (ROA), and return on equity (ROE). Purposive sampling was used to choose 39 manufacturing enterprises from the various industries sector in 2021 to serve as the study's sample. The financial information, financial reports, and ratios available on the www.idx.co.id website for the example firms were all utilized. Multiple regression analysis was employed as the analytical method in this work. Variables are simultaneously and partially assessed at a significance threshold of 5% on stock returns using F test statistics and t statistics in hypothesis testing. In hypothesis testing, variables are partially tested using t statistics and simultaneously tested using F test statistics at a significance level of 5% on stock returns. The findings of this study indicate that a company's value is significantly influenced by its Debt to Equity Ratio (DER). In contrast, Return On Equity (ROE) and Return On Assets (ROA) have very little effect on the company's worth.

Copyright

© 2024 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Rustanti Rustanti
AU  - Nessa Amalia Nur Safitri
AU  - Ririn Septian Rahmawati
AU  - Kharies Yoga Pratama
AU  - Ardian Prima Putra
PY  - 2024
DA  - 2024/05/30
TI  - Factors Affecting The Value Of Companies (Empirical Study of Various Industrial Sector Companies on The Indonesian Stock Exchange in 2021)
BT  - Proceedings of the 2nd International Conference on Management and Business (ICOMB 2023)
PB  - Atlantis Press
SP  - 75
EP  - 84
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-402-0_9
DO  - 10.2991/978-94-6463-402-0_9
ID  - Rustanti2024
ER  -