THE INFLUENCE OF PROFITABILITY, LEVERAGE AND GOOD CORPORATE GOVERNANCE ON COMPANY VALUE

Abstract

This study aims to find empirical evidence of the influence between variables,
namely profitability, leverage, and good corporate governance (audit
committee, institutional ownership) on firm value. The number of samples
used are 14 food and beverage sector manufacturing companies listed on the
IDX in the 2017 – 2019 period and a total of 168 data. The secondary data
selected were obtained from the financial statements of companies listed on
the IDX. Purposive sampling method (sampling technique selected randomly)
was used to collect samples. The data was processed by multiple regression
analysis with SPSS 23 for windows by looking at the results of descriptive
statistical analysis, classical assumption testing and hypothesis testing with t
test and F test. Based on the research conducted, the result is that profitability
has a positive and significant effect on firm value. Meanwhile, Leverage, audit
committee, and institutional ownership have no effect on firm value.