The Effect of Investment Decisions, Funding, And Profitability on Company Value with Corporate Governance as Moderating Variables

Abstract

This study aims to examine and analyze the effect of investment decisions, funding decisions, and profitability on firm value, moderated by corporate governance. The object of research is a company that went public on the Indonesia Stock Exchange for the period 2014 – 2018. The study tested a sample using a purposive sampling method on 10 companies in the infrastructure, utility and transportation sectors from 50 financial statements that were observed. The independent variables consist of market book value, debt to equity ratio, and return on assets, while the dependent variable is price book value, and the moderating variable is managerial ownership. Test analysis using multiple linear regression. The results of the analysis show that the investment decision variables and funding decisions have a positive effect on firm value. While the profitability variable has no effect on firm value, and thevariable corporate governance does not moderate the influence between investment decisions, funding decisions, and profitability on firm value.