DO FOREIGN OWNERSHIP, FINANCIAL LEVERAGE, INFLATION AND FIRM SIZE INFLUENCE TO FIRM VALUE ? EVIDENCE IN INDONESIA STOCK EXCHANGE

Abstract

The aim of this study is to get empirical proof the influence of foreign ownership, financial leverage, Inflation, firm size and firm value of firms listed in Indonesia Stock Exchange (IDX). This study provides results on consumer, trade, service and investment, and miscellaous industry in IDX. This study uses fixed effect methode.This study uses E-Views to analysis the data. F test shows that high financial leverage, foreign ownership, inflation, firm size and sales growth is positively related to firm value. T test shows that high financial leverage is positively related to firm value. Moreover, High Foreign ownership is positively related to firm value. High inflation is positively related to firm value. High firm size is positively related to firm value. This study uses sales growth as control variable. The result shows that high sales growth is negatively related to firm value. This study expected that it can deliver information as references for stockholder, firm management, and goverment in making decision in foreign investment, Inflation and financial leverage.Keywords : Financial Leverage, Foreign Ownership, Inflation, Firm Value