The Effect of Profitability, Sales Growth, Capital Structure and Firm Size on Firm Value (Study of Infrastructure Sector Companies in 2018-2022)

Abstrak

This research is motivated by fluctuations in stock prices in several infrastructure companies from 2018 to 2022. In this study there are several factors that can affect firm value, namely profitability measured by Return On Asset (ROA) and Net Profit Margin (NPM), sales growth, capital structure measured by Debt to Equity Ratio (DER), and firm size. The purpose of this study was to determine the impact of profitability measured by Return On Asset (ROA) and Net Profit Margin (NPM), sales growth, capital structure measured by Debt to Equity Ratio (DER), and firm size on firm value measured by Price to Book Value (PBV). The population in this study are infrastructure sector companies included in the infrastructure sectoral stock index group (IDXINFRA) listed on the Indonesia Stock Exchange (IDX) in 2018-2022. The sampling method used was purposive sampling method and obtained 35 companies with a total sample of 175 financial reports which became the object of research. The data analysis method is quantitative analysis using multiple linear regression analysis and hypothesis. The results showed that profitability as measured by Return On Asset (ROA) has a positive and significant effect on firm value, profitability as measured by Net Profit Margin (NPM) has a negative and significant effect on firm value, sales growth has a positive and significant effect on firm value, capital structure and firm size have no effect on firm value.