Study of Financial Management Policy on Company Value (Study of the Textile and Garment Industry on the Indonesia Stock Exchange Period 2013-2017)

Abstract

The purpose of this study was to determine the effect of financial management policies which include investment policy, debt policy, profit policy) on the value of the company in the textile and garment industry companies that are listed on the Indonesia Stock Exchange (IDX) for the period 2013-2017. The research method used was purposive sampling and obtained sample of 6 companies from population of 17 textile and garment industry companies that were listed on the Indonesia Stock Exchange (IDX) for the period 2013-2017. The analysis technique used is multiple linear regression analysis. Based on the results of the study show that investment policies partially have no significant effect on firm value, debt policy partially has a significant effect on firm value, earnings policy has a significant effect on firm value, then based on the coefficient of determination (r2) of 66.9% explained by independent variables namely: investment policy, debt policy, profit policy. While the remaining 33.1% is explained by other variables not examined in this study, for example, macroeconomic conditions, capital structure, company growth. Keywords: Investment policy; debt policy; profit policy; firm value