The Effect of Profitability, Leverage, and Firm Size on Firm Value (Case of Registered Company In Jakarta Islamic Index 2015-2020 period)

Abstract

The aim of this research is to determine the effect of profitability, leverage, and firm size on firm value. The population included in the study are companies listed on the Jakarta Islamic Index for the 2015-2020 period. The sample in this study were 13 companies and analyzed using purposive sampling method and produced 78 research data. The research uses quantitative research because it uses more numbers so that the research is more detailed and clearer. The data analysis used in this research is determining the accuracy of the panel data estimation model, classical assumption test, panel data regression analysis, and hypothesis testing. Research data processing using analysis tool, Eviews version 10. The results showed that the profitability and firm size variables partially had no effect on firm value, while the leverage variable partially had a significant positive effect on firm value. But the variables of profitability, leverage, and firm size together or simultaneously affect the firm value.