The Effect of Firm Size, Leverage and Profitability on Firm Value in Manufacturing Companies in the Pharmaceutical Industry Sector Listed on the Indonesia Stock Exchange and the Malaysia Stock Exchange for the 2007-2019

Abstract

Firm value is one measure of the company's success in carrying out its operational activities so as to maintain the trust of shareholders. This study aims to analyze the effect and differences in firm size, Debt to Asset Ratio (DAR), Debt to Equity Ratio (DER), Net Profit Margin (NPM), Return Of Assets (ROA), Return Of Equity (ROE) as factors that affect the value of companies in the Pharmaceutical Sector companies listed on the Indonesia Stock Exchange and the Malaysia Stock Exchange for the period 2007-2019. The type of data used is secondary data obtained from the Indonesia Stock Exchange and the Malaysia Stock Exchange. The population of this study is the Pharmaceutical Sector companies listed on the Indonesia Stock Exchange and the Malaysia Exchange for the period 2007-2019. Based on purposive sampling, the research sample was 11 companies with a total of 143 observational techniques. Data analysis is multiple linear regression test and different test using STATA software. The results of this study indicate that the variables of firm size, Debt to Asset Ratio (DAR), Debt to Equity Ratio (DER), Net Profit Margin (NPM), Return Of Assets (ROA), and Return Of Equity (ROE) have a positive and significant effect to the value of the company. There are differences between Pharmaceutical Sector companies on the Indonesia Stock Exchange and the Malaysia Stock Exchange. The practical implication of this research is that in assessing the company's performance, the value of the company can affect investors in making their investments.