THE INFLUENCE OF PROFITABILITY, LEVERAGE AND GOOD CORPORATE GOVERNANCE ON COMPANY VALUE

Abstract

This study aims to find empirical evidence of the influence between variables, namely profitability, leverage, and good corporate governance (audit committee, institutional ownership) on firm value. The number of samples used are 14 food and beverage sector manufacturing companies listed on the IDX in the 2017 – 2019 period and a total of 168 data. The secondary data selected were obtained from the financial statements of companies listed on the IDX. Purposive sampling method (sampling technique selected randomly) was used to collect samples. The data was processed by multiple regression analysis with SPSS 23 for windows by looking at the results of descriptive statistical analysis, classical assumption testing and hypothesis testing with t test and F test. Based on the research conducted, the result is that profitability has a positive and significant effect on firm value. Meanwhile, Leverage, audit committee, and institutional ownership have no effect on firm value.