THE INFLUENCE OF FINANCE PERFORMANCE TO COMPANY VALUE IN FOOD AND BEVERAGES COMPANIES LISTED ON THE STOCK EXCHANGE EFFECT INDONESIA

Abstract

Industry sector of food and beverages is growing rapidly because of high consumption of food and beverages. That is because competitive competition among companies to develop their business in Indonesia and investors see the opportunity to invest the capital. A firm value is an investment decision that investors must pay attention to since the good company prospects are seen from the high value of the company. This study examines the effect of return on equity, net profit margin, debt to equity ratio, and long-term debt to equity ratio on price book value. In this study, the samples used are 190 samples with 38 food and beverages companies in the period of 2018- 2022. The selection of this sample uses purposive sampling and the type of data used is secondary data. The method of analysis of this study uses multiple regression analysis. The results showed that ROE, NPM, DER, and LDER simultaneously affect the PBV. The results of the research partially showed that ROE and LDER had an effect on PBV, while NPM and LDER had no effect on PBV. The results of the coefficient of determination shows results of 86%. These results indicate that the independent variable is able to explain the dependent variable by 86% and the remaining 14% is explained by other variables.