THE ANALYSIS OF FIRM VALUE IN INDONESIA PROPERTY AND REAL ESTATE COMPANIES

Abstract

Firm value is one of the factors that can affect investors and the public. Investors tend to invest their capital in companies that have good firm value because if firm value is good it will have a good impact on dividend distribution and shareholder welfare. While from the community point of view, the public will use a product or service of a company that has a brand image or a good image because with a brand image or a good image, the public will have the view that the company has good quality and performance. The purpose of this study is to examine the effect of profitability, capital structure, managerial ownership and institutional ownership on the firm value of property and real estate companies listed on the Indonesia Stock Exchange in 2014-2017. Sample of this study is purposive sampling method. The analytical method of the study is multiple regression analysis. The results showed that the regression model was able to explain well the effect of profitability, capital structure, and managerial ownership on the firm value. This is indicated by the value of Adj R-Square = 80.34%. Hypothesis test results inform that profitability, capital structure and managerial ownership affect the firm value.