International Journal of Economics, Business and Accounting Research (IJEBAR)
Vol 6, No 3 (2022): IJEBAR, Vol. 6 Issue 3, September 2022

THE EFFECT OF CURRENT RATIO, DEBT TO EQUITY RATIO, FIRM SIZE, AND NET PROFIT MARGIN ON COMPANY VALUE (Study on Fast Moving Consumer Goods Company (FMCG) In 2016-2020)

Rafi Raihan Wahid (Pembangunan Nasional Veteran Yogyakarta University)



Article Info

Publish Date
10 Oct 2022

Abstract

The purpose of this study was to examine the effect of Current Ratio, Debt to Equity Ratio, Firm Size, and Net Profit Margin on firm value (Tobin's Q) in the food and beverages sub-sector listed on the Indonesian stock exchange in the 2016-2020 period. The phenomenon that is the main focus in this study is the decline in the average company stock price on the Jakarta Consumer Index (JKCONS) in the last 5 years which is inversely proportional to the growth in total assets and company profits in the food and beverages sub-sector which increased. The population in this study amounted to 87 companies. The sampling technique used purposive sampling, total sample is 23 companies. The analysis technique uses the Multiple Regression analysis method and the classical assumption is tested first. The results of the analysis in this study is: Current Ratio has insignificant effect on firm value, debt to equity ratio has positive and significant effect on firm value, firm size has negative and significant effect, and net profit margin has insignificant effect. This research is expected to contribute to the development of the science of Financial Management, especially in research on Company Value (Tobin's Q).

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Journal Info

Abbrev

IJEBAR

Publisher

Subject

Economics, Econometrics & Finance

Description

International Journal of Economics, Business, and Accounting Research (IJEBAR) is a peer-reviewed, open access international scientific journal dedicated for rapid publication of high-quality original research articles as well as review articles in all areas of Economics, Business and Accounting. ...