Analysis of the Effectiveness of Company Value in Manufacturing Companies

Ratih Puspitasari; Hotma Mentalita; Ngurah Pandji Mertha Agung Durya; Uli Wildan Nuryanto; Victor Pattiasina

doi:10.55529/jpome.44.45.50

Authors

Ratih Puspitasari Institut Bisnis dan Informatika Kesatuan Bogor, Indonesia.
Hotma Mentalita Institut Teknologi dan Bisnis Indonesia, Indonesia.
Ngurah Pandji Mertha Agung Durya Universitas Dian Nuswantoro, Indonesia.
Uli Wildan Nuryanto Universitas Bina Bangsa, Indonesia.
Victor Pattiasina Universitas Yapis Papua, Indonesia.

Keywords:

iCompany iValue, iReturn ion iAsset, iDebt ito iEquity iRatio. i

Abstract

Currently,itheiindustrial worldiis developingiincreasinglyirapidly. The emergence of various types of small and large companies has created intense competition between companies. Competitioniin theiindustrialiworld, especiallyiin the manufacturingiindustry, makesievery company increasinglyiimproveiits performance so thatiitsigoalsicanistill be achieved. Every company aims to increase the prosperity of its ownersiorishareholdersithrough maximizing company value. The factors that effectithe effectiveness of company value used in this research are return on asset and debtitoiequity ratio. The purpose of thisiresearch is to analyze the effectiveness of company value in Manufacturing Companies. Thisiresearchiuses quantitative methods. Theipopulation inithis study are companies operating in theimanufacturing sector whichiareilisted on the Indonesia Stock Exchange. The observation sample in this research was taken from 2020 to 2023 with a total of 55 manufacturing companies selected accordingitoithe criteria.iTheidataianalysis method toianswerithe problem formulationiand hypothesis uses panel data regression analysis. The results of ithis research show that return on asset has a significant effect on company value in Manufacturing Companies, because the probability value of 0.021 is smaller than the alpha of 0.05. Debt to equity ratio has a significant effect on company value in Manufacturing Companies, because the probability value of 0.002 is smaller than the alpha of 0.05.