Relationship Between Profitability, Investment Decisions On Firm Value: A Study Of Listed Banks In Indonesia
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Published:
Sep 20, 2021
Keywords:
Profitability, Capital Structure, Investment Decisions, Company Value
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Abstract
The purpose of this study is to determine the effect of profitability, capital structure, and investment decisions on firm value in the property, real estate and building construction sectors listed on the Indonesia Stock Exchange for the 2015-2019 period. The population in this study were 83 companies. The sampling technique in this study was purposive sampling and produced a sample of 30 companies. The data analysis technique in this study uses multiple linear regression, while the analysis tool used is SPSS 25. This research hypothesis states that profitability has a positive and significant effect on firm value, capital structure has a positive and significant effect on firm value, investment decisions have a positive and significant effect. to company value.
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Copyright (c) 2021 Chalimatuz Sa’diyah
This work is licensed under a Creative Commons Attribution 4.0 International License.
References
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Dang, H, N., Vu, VTT, Ngo, XT & Hoang, HTV (2019). Study the Impact of Growth, Firm Size, Capital Structure, and Profitability on Enterprise Value: Evidence of Enterprises in Vietnam. The Journal of Corporate Accounting & Finance, 30, 1, 144-160 DOI 10.1002 / jcaf.22371.
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listed on the IDX for the period 2012-2016. Journal of Management Science. Vol, 6 (3), 112-125.
Hamidah, H., Hartini, H., & Mardiyati, U. (2015). The Influence of Inflation, Bi Interest Rates, Profitability, and Financial Risk on Firm Value in the Property Sector 2011-2013. JRMSI - Indonesian Science Management Research Journal, 6 (1), 395. https://doi.org/10.21009/jrmsi.006.1.04
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Ikpesu, F., & Eboiyehi, OC (2018). Capital structure and corporate financial distress of manufacturing firms in Nigeria. Journal of Accounting and Taxation. https://doi.org/10.5897/jat2018.0309
Lubis, I. Sinaga, BM, Sasongko, H. (2017). Effect of Profitability, Capital Structure, and Liquidity on Firm Value. Journal of Business and Management Applications. Vol. 3 (3), 458-465.
Nurhayati, M. (2013). Profitability, Liquidity and Company Size Impact on Dividend Policy and Company Value in the Non-Service Sector. Journal of Finance and Business. Vol 5 (2), 144-153.
Novari, Putu Mikhy & Lestari, PV (2016). THE EFFECT OF COMPANY SIZE, LEVERAGE, AND PROFITABILITY ON COMPANY VALUE IN THE PROPERTY AND REAL ESTATE SECTOR. E-Journal of Management of Udayana University, Vol. 5, No (ISSN: 2302-8912), 5671–5694.
Khasawneh, AY, & Staytieh, KS (2017). Impact of foreign ownership on capital structure & firm value in an emerging market: Case of Amman stock exchange listed firms. Afro-Asian Journal of Finance and Accounting. https://doi.org/10.1504/AAJFA.2017.082928
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Kurniasih, B. & Ruzikna. (2017). The Influence of Capital Structure and Investment Decisions on Firm Value in the Food and Beverage Industry Listed on the IDX. FISIP Journal. Vol, 4 (2), 1-14.
Oktarina, D. (2018). The analysis of firm value in Indonesia Property and Real Estate Companies. International Journal of Research Science & Management.
Riana & Iskandar, D. (2017). The Influence of Company Size, Corporate Governance, and Capital Structure on Firm Value (Empirical Study of Mining Companies Listed on the Indonesia Stock Exchange Period 2011 - 2014), Profita, 10, (3), 409-425.
Pangulu, AL (2014). The Effect of Profitability, Growth Opportunity, and Capital Structure on Firm Value (Studies on Banking Companies Listed on the IDX for the period 2011-2013), 1-12.
Officer, A..GA & Wiksuana, IGB (2018). The Effect of Profitability and Asset Growth on Dividend Policy and Company Value. E-Journal of Management Unud. Vol. 7 (7), 3767-3796.
Pratiwi, NPY, Yudiaatmaja, F., Suwendra, IW (2016). The Effect of Capital Structure and Firm Size on Firm Value. Management Journal. Vol, 4, 1-9.
Safitri, N. & Wahyuati, A. (2015). The Influence of Capital Structure and Investment Decisions on Profitability and Firm Value. Journal of Management Science and Research. Vol. 4 (2), 1-17.
Sartono A. (2010). Financial Management Theory and Applications. Yogyakarta: BPFE.
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Situmeang, YML, & Wiagustini, NLP (2018). The influence of capital structure on firm value with herging policy as a mediation in Go-Public BUMN companies. E-Journal of Management of Udayana University, 7 (3), 1368–1396.
Sucuahi, W., & Cambarihan, JM (2016). Influence of Profitability to the Firm Value of Diversified Companies in the Philippines. Accounting and Finance Research, 5 (2). https://doi.org/10.5430/afr.v5n2p149
Sudiani, NKA, & Wiksuana, IGB (2018). Capital Structure, Investment Opportunity Set, Dividend Policy And Profitability As A Firm Value Determinants. Russian Journal of Agricultural and Socio-Economic Sciences. https://doi.org/10.18551/rjoas.2018-09.30
Sudana, I M. (2011). Corporate Financial Management. Jakarta: Erlangga.
Vranakis, P. (2012). A Conceptual Model For Machinery And Aquipment Investment Decisions. International Journal Of Business And Management Vol, 7 (1), 36-57.
Weston, JF & Copeland. (2008). Fundamentals of Financial Management Volume II. Jakarta: Erlangga.
Wulandari, NE, & Suryono, B. (2018). THE INFLUENCE OF CAPITAL STRUCTURE, COMPANY SIZE AND Novi Eka Wulandari Bambang Suryono Indonesian College of Economics (STIESIA) Surabaya. Journal of Accounting Science and Research E-ISSN: 2460-0585 EFFECT OF CAPITAL STRUCTURE, COMPANY SIZE AND PROFITABILITY ON COMPANY VALUE Novi, Volume 7.
Yanti, PDM, & Abundanti, N. (2019). The Effect of Profitability, Leverage and Dividend Policy on the Value of Property, Real Estate and Building Construction Companies. E-Journal of Management of Udayana University, Vol. 8, No (ISSN: 2302-8912), 5632–5651.https://doi.org/10.24843/ejmunud.2019.v08.i09.p14
Brigham & Houston. (2012). Fundamentals of Financial Management. Fifth Edition. Jakarta: Four Salemba.
Diannisa, SRY Lukytawati, A. & Koes, P. (2019). Impact of Capital Structure and Firm Financial Performance on Firm Value: Evidence of Agribusiness Firms in Indonesia Stock Exchange, RJOAS, 1 (85), 445-451. DOI 10.18551 / rjoas.2019-01.54.
Dang, H, N., Vu, VTT, Ngo, XT & Hoang, HTV (2019). Study the Impact of Growth, Firm Size, Capital Structure, and Profitability on Enterprise Value: Evidence of Enterprises in Vietnam. The Journal of Corporate Accounting & Finance, 30, 1, 144-160 DOI 10.1002 / jcaf.22371.
Fahmi, I. (2013). Financial Statement Analysis. Bandung: Alfabeta.
Fauziah, A. (2018). The Effect of Investment Decisions, Funding Decisions, Dividend Policy, and Profitability on Firm Value (Studies on Industrial and Chemical companies
listed on the IDX for the period 2012-2016. Journal of Management Science. Vol, 6 (3), 112-125.
Hamidah, H., Hartini, H., & Mardiyati, U. (2015). The Influence of Inflation, Bi Interest Rates, Profitability, and Financial Risk on Firm Value in the Property Sector 2011-2013. JRMSI - Indonesian Science Management Research Journal, 6 (1), 395. https://doi.org/10.21009/jrmsi.006.1.04
Hanafi, M. & Halim, A. (2014). Financial Statement Analysis. Yogyakarta: (UPP) STIM YKPN.
Hirdinis. (2019). Capital Structure and Firm Size on Firm Value Moderated by Profitability International, Journal of Economics and Business Administration, 12, (1), 174-191.
Ikpesu, F., & Eboiyehi, OC (2018). Capital structure and corporate financial distress of manufacturing firms in Nigeria. Journal of Accounting and Taxation. https://doi.org/10.5897/jat2018.0309
Lubis, I. Sinaga, BM, Sasongko, H. (2017). Effect of Profitability, Capital Structure, and Liquidity on Firm Value. Journal of Business and Management Applications. Vol. 3 (3), 458-465.
Nurhayati, M. (2013). Profitability, Liquidity and Company Size Impact on Dividend Policy and Company Value in the Non-Service Sector. Journal of Finance and Business. Vol 5 (2), 144-153.
Novari, Putu Mikhy & Lestari, PV (2016). THE EFFECT OF COMPANY SIZE, LEVERAGE, AND PROFITABILITY ON COMPANY VALUE IN THE PROPERTY AND REAL ESTATE SECTOR. E-Journal of Management of Udayana University, Vol. 5, No (ISSN: 2302-8912), 5671–5694.
Khasawneh, AY, & Staytieh, KS (2017). Impact of foreign ownership on capital structure & firm value in an emerging market: Case of Amman stock exchange listed firms. Afro-Asian Journal of Finance and Accounting. https://doi.org/10.1504/AAJFA.2017.082928
Khémiri, W., & Noubbigh, H. (2018). Determinants of capital structure: Evidence from sub-Saharan African firms. Quarterly Review of Economics and Finance. https://doi.org/10.1016/j.qref.2018.04.010
Komarudin, M. & Affandi. N. (2019). Firm Value, Capital Structure, Profitability, Firm Characteristic and Disposable Income as Moderator: an Empirical Investigation of Retail Firms in Indonesia Inovbiz: Journal of Business Innovation 7 (2019) 79-85.
Kurniasih, B. & Ruzikna. (2017). The Influence of Capital Structure and Investment Decisions on Firm Value in the Food and Beverage Industry Listed on the IDX. FISIP Journal. Vol, 4 (2), 1-14.
Oktarina, D. (2018). The analysis of firm value in Indonesia Property and Real Estate Companies. International Journal of Research Science & Management.
Riana & Iskandar, D. (2017). The Influence of Company Size, Corporate Governance, and Capital Structure on Firm Value (Empirical Study of Mining Companies Listed on the Indonesia Stock Exchange Period 2011 - 2014), Profita, 10, (3), 409-425.
Pangulu, AL (2014). The Effect of Profitability, Growth Opportunity, and Capital Structure on Firm Value (Studies on Banking Companies Listed on the IDX for the period 2011-2013), 1-12.
Officer, A..GA & Wiksuana, IGB (2018). The Effect of Profitability and Asset Growth on Dividend Policy and Company Value. E-Journal of Management Unud. Vol. 7 (7), 3767-3796.
Pratiwi, NPY, Yudiaatmaja, F., Suwendra, IW (2016). The Effect of Capital Structure and Firm Size on Firm Value. Management Journal. Vol, 4, 1-9.
Safitri, N. & Wahyuati, A. (2015). The Influence of Capital Structure and Investment Decisions on Profitability and Firm Value. Journal of Management Science and Research. Vol. 4 (2), 1-17.
Sartono A. (2010). Financial Management Theory and Applications. Yogyakarta: BPFE.
Sintyana, IPH, & Artini, LGS (2018). The Effect of Profitability, Capital Structure, Company Size and Dividend Policy on Firm Value. Udayana University Management E-Journal, 8 (2), 757. https://doi.org/10.24843/ejmunud.2019.v08.i02.p07
Situmeang, YML, & Wiagustini, NLP (2018). The influence of capital structure on firm value with herging policy as a mediation in Go-Public BUMN companies. E-Journal of Management of Udayana University, 7 (3), 1368–1396.
Sucuahi, W., & Cambarihan, JM (2016). Influence of Profitability to the Firm Value of Diversified Companies in the Philippines. Accounting and Finance Research, 5 (2). https://doi.org/10.5430/afr.v5n2p149
Sudiani, NKA, & Wiksuana, IGB (2018). Capital Structure, Investment Opportunity Set, Dividend Policy And Profitability As A Firm Value Determinants. Russian Journal of Agricultural and Socio-Economic Sciences. https://doi.org/10.18551/rjoas.2018-09.30
Sudana, I M. (2011). Corporate Financial Management. Jakarta: Erlangga.
Vranakis, P. (2012). A Conceptual Model For Machinery And Aquipment Investment Decisions. International Journal Of Business And Management Vol, 7 (1), 36-57.
Weston, JF & Copeland. (2008). Fundamentals of Financial Management Volume II. Jakarta: Erlangga.
Wulandari, NE, & Suryono, B. (2018). THE INFLUENCE OF CAPITAL STRUCTURE, COMPANY SIZE AND Novi Eka Wulandari Bambang Suryono Indonesian College of Economics (STIESIA) Surabaya. Journal of Accounting Science and Research E-ISSN: 2460-0585 EFFECT OF CAPITAL STRUCTURE, COMPANY SIZE AND PROFITABILITY ON COMPANY VALUE Novi, Volume 7.
Yanti, PDM, & Abundanti, N. (2019). The Effect of Profitability, Leverage and Dividend Policy on the Value of Property, Real Estate and Building Construction Companies. E-Journal of Management of Udayana University, Vol. 8, No (ISSN: 2302-8912), 5632–5651.https://doi.org/10.24843/ejmunud.2019.v08.i09.p14