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The analysis of relationship between profitability, liquidity, company size and company values of chemical industry sector manufacturer

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  • The analysis of relationship between profitability, liquidity, company size and company values of chemical industry sector manufacturer

Yanti Budiasih *, Yohanes Indrayono and Hendro Sasongko

Faculty of Economics, Pakuan University, Indonesia.

Research Article
 

World Journal of Advanced Research and Reviews, 2023, 19(02), 779–783
Article DOI: 10.30574/wjarr.2023.19.2.1607
DOI url: https://doi.org/10.30574/wjarr.2023.19.2.1607

Received on 29 June 2023; revised on 08 August 2023; accepted on 10 August 2023

The purpose of this study is to ascertain how the value of companies in the chemical industry sector that are listed on the Indonesian stock exchange from 2020 to 2022 is influenced by profitability, solvency, and firm size. This study used Panel Data Regression Analysis, the Classical Assumptions Test, and Multiple Linear Regression Analysis with E-Views 9.0 with a significance level of 5%. The findings of the research indicate that the financial gain (return on equity) does not have an influence on the worth of the company (price-to-book value). However, the ability to meet financial obligations (current ratio) has a negative impact on the worth of the company (price-to-book value). The size of the company does not have any effect on the worth of the company (price-to-book value). Additionally, the financial gain, ability to meet financial obligations, and size of the company all have a simultaneous influence on the worth of the company (price-to-book value). The outcome variable in this research can be clarified by the three independent variables, with an R2 value of 69.14%. 

Profitability; Liquidity; Company Size; Company Value

https://wjarr.co.in/sites/default/files/fulltext_pdf/WJARR-2023-1607.pdf

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Yanti Budiasih, Yohanes Indrayono and Hendro Sasongko. The analysis of relationship between profitability, liquidity, company size and company values of chemical industry sector manufacturer. World Journal of Advanced Research and Reviews, 2023, 19(02), 779–783. Article DOI: https://doi.org/10.30574/wjarr.2023.19.2.1607

Copyright © 2023 Author(s) retain the copyright of this article. This article is published under the terms of the Creative Commons Attribution Liscense 4.0

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