THE IMPACT OF CAPITAL STRUCTURE, PROFITABILITY, AND FIRM SIZE TOWARDS CORPORATE VALUE ON SELECTED AUTOMOTIVE INDUSTRY LISTED IN IDX PERIOD 2009-2013

Abstract

One of the company’s goals is to maximizing corporate value. Company which can create good performance will draw many investors. In Indonesia automotive industry become one of the most contributing that will give positive impact on the development of Indonesia’s economy recovery because this industry constantly evolve every year. In an effort to increase corporate value, factors which can influence it must be noted. This research would like to analyze several fundamental factors. There are capital structure proxy by DER, profitability proxy by ROE, and firm size towards corporate value proxy by PER. The sample used were 9 companies of automotive industry listed in IDX period 2009-2013. This research uses quantitative method. The total observation is 45 observations, from annually financial report in 5 years. This research uses SPSS 16.00 as the statistical tools. Moreover, multiple regression analysis is used to analyze the influence. The result of this study show ROE and firm size has significant impact toward corporate value, while DER has no significant impact toward corporate value. All of the factors are found out to influence corporate value by 24.8% otherwise the remaining 75.2% of corporate value can be explained by other variables.