DO COMPANY PRODUCTIVITY, PRICE-EARNINGS RATIO, AND EFFECTIVE TAX RATE AFFECT FIRM VALUE?

Abstract

Investors look for companies with growing firm value and are eager to know the factors that affect it. Other research that has been conducted previously relating to factors that influence company value shows different results. This is the motivation for researchers to conduct research which is a development of previous research. The purpose of this study is to obtain empirical evidence about the effect of firm size, company productivity, firm age, price earning ratio, profitability, leverage, effective tax rates, and audit quality on firm value. The sample used in this research is manufacturing companies listed on the Indonesia Stock Exchange consistently from 2016 until 2018. The sample selection method used was purposive sampling, there were 75 companies met the criteria, resulting in 225 data being taken as samples. Research data were analyzed by doing hypothesis tests using multiple regression methods to determine the model of research. The results of this study show that firm size, profitability, and leverage affect firm value. company productivity, firm age, price earning ratio, effective tax rates, and audit quality do not affect the value of the firm.