THE EFFECT OF FINANCIAL RATIOS ON THE FIRM VALUE

Abstract
This study aims to examine the effect of financial ratios on firm value in investment sector companies listed on the Indonesia Stock Exchange for the 2014-2018 period. This study uses panel data analysis method to determine financial ratios that affect firm value (Profitability, Leverage and Tangibility) in investment companies listed on the Indonesia Stock Exchange, using a sample of 8 companies selected using purposive sampling method. The results of empirical testing state that the Debt to Asset Ratio has a positive effect on firm value, while Net Profit Margin and Asset Tangibility have no effect on firm value.
Description
Keywords
Net Profit Margin, Debt to Assets Ratio, Tangibility
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