The Influence of Financial Leverage and Firm Size on the Company Value (A Study on Telecomunication Company BEI Listed in 2014-2018)

DOI

10.2991/icss-19.2019.37How to use a DOI?

Keywords

Financial leverage; firm size; profitability; corporate value

Abstract

Financial leverage; firm size; and profitability are some of the components that affect the company's value. The objectives of this research is to know the influence of financial leverage; firm size; and profitability of the company's value; to know the influence of financial leverage and firm size toward profitability. The research sample is a telecommunications company that lists in IDX of 2013-2018; the analytical techniques used are path analysis. Based on the results of the analysis; it shows that the components of the financial leverages consisting of DER (debt Equity ratio) affect the company's value; while the TIE (Time interest Ratio) does not affect the value of the company. Variable size companies demonstrate an influence on the company's value; as well as the whole component of the financial leverage affects profitability. Meanwhile; variable of firm size also affect profitability. The profitability variable affects the value of the company directly as well.

Copyright

© 2019, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Nindi Vaulia Puspita
AU  - Kartika Yuliari
PY  - 2019/11
DA  - 2019/11
TI  - The Influence of Financial Leverage and Firm Size on the Company Value (A Study on Telecomunication Company BEI Listed in 2014-2018)
BT  - Proceedings of the International Conference on Social Science 2019 (ICSS 2019)
PB  - Atlantis Press
SP  - 1019
EP  - 1023
SN  - 2352-5398
UR  - https://doi.org/10.2991/icss-19.2019.37
DO  - 10.2991/icss-19.2019.37
ID  - VauliaPuspita2019/11
ER  -