THE EFFECT OF PROFITABILITY AND INVESTMENT DECISIONS ON COMPANY VALUE WITH GOOD CORPORATE GOVERNANCE AS MODERATING (Case Study on Manufacturing Companies Listed on the Indonesia Stock Exchange)
Yulfi Haniyah Farasary, Edi Winarto, Ari Kamayati

State Polytechnic of Malang

Abstract

Abstract - This research aimed to determine the effect of profitability and investment decisions on firm value. The population used in this research was manufacturing companies listed on the Indonesia Stock Exchange period 2017-2019 which were amounted to142 companies. The samples were determined through the purposive sampling method, in order to obtain samples of 18 companies. The research data was in the form of secondary annual report data which was collected through documentation technique. The data analysis used descriptive statistics and multiple linear regression analyses. The results showed that the effect of profitability as proxied by return on assets and investment decisions proxied by price earning ratio simultaneously had a positive and significant effect. The results also showed that the influence of profitability and investment decisions partially had positive and significant effect on firm value with good corporate governance as a moderator. So, it is expected that the companies can use these two variables as a reference to determine their strategy in increasing the companies^ value by using good corporate governance.

Keywords: Effect of Profitability, Investment Decision, Firm Value, Good Corporate Governance

Keywords: Effect of Profitability, Investment Decision, Firm Value, Good Corporate Governance

Topic: Accounting