Liquidity Effect, Profitability Leverage to Company Value: A Case Study Indonesia
European Journal of Molecular & Clinical Medicine,
2020, Volume 7, Issue 11, Pages 2800-2822
AbstractPurpose: In Engineering Economics is taught that to make an investment an investor must be careful and need to understand the economic condition and performance of the Company where we will conduct investment activities. Economic performance of the current situation The competitiveness of companies in the market becomes a decisive choice. An examination of the ability to pay debts will provide accurate financial statements. The Company's value is one of the indicators evaluate the performance of the company in general. To support and understand investment activities. The research is expected to knowing impact of the profitability, liquidity, leverage variables on Company's value, especially in companies listed in the Jakarta Islamic Index Indonesia (JII) to assist investors in decision making.
Design / methodology / approach: The technique used in this analysis is quantitative approach with sample determination technique with purposive sampling technique while to analyze the data used multi-linear regression analysis.
Finding: In contrast to the results of researches on companies based on conventional (non Islamic) This research successfully showed that in Islamic Index-based companies only liquidity variables impact the Company Value, while the variables Profitability and Leverage do not affect Company Value.
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