The Effect of Liquidity, Leverage, and Profitability on Firm Value (Case Study in the Automotive Subsector Companies Listed on the Indonesia Stock Exchange for the 2013- 2018 Period)

Authors

  • Neneng Susanti*, Tia Andriyani Setiawan

Abstract

This study aims to determine the effect of liquidity, leverage, and profitability on the firm value of
automotive subsector in the 2013-2018 period. The population of this study consists of 12 automotive
companies that listed on the Indonesian Stock Exchange (IDX). Whereas purposive sampling method is the
sample selection method which is used in this study. Thus, the result shows that there are 5 companies that
fit the criteria of the sample. The data analysis method which is used in this study is the panel data. The
hypothesis testing results of this study indicate that liquidity and leverage have no negative effect on firm
value, whereas profitability has a positive and significant effect on firm value of the companies of the
automotive subsector in the 2013-2018 period. Simultaneously liquidity, leverage, and profitability have a
significant effect on the firm value of the companies of the automotive subsector in the 2013-2018 period.

Published

2020-04-30

Issue

Section

Articles