Abstract:
The main objective of the company is to maximize the company’s value.
Company’s value is the investor perception toward the company’s success
rate, which is often reflected by the share price. This research objective is to
examine the influence of firm size, leverage and profitability toward the
value of the company. This research used secondary data of 11 Food and
Beverage Company listed in Indonesia Stock Exchange period from 2006-
2012. The research sample method using the purposive sampling method,
which is the object is taken using specified criteria. The data analysis used
descriptive analysis and multiple regressions analysis that calculated by
SPSS program version 16.0 for windows. The test result is the data sample
has normal distribution, it showed from the plots that obtained from the
normality test, which is the data spread around the diagonal line. There is no
multicollinearity in empiric model test. This showed from the tolerance
value form all independent variable is more than 0, and the VIF (Variance
Inflation Factor) value showed all of independent variable has value less
than 10. The test result showed there is no autocorrelation, it was proved
with DW value is 1.824, which is more than du’s value 1.68348 and less
than (4 – du) 2.31652. The scatterplot test showed there is no
heterostedasticity in this research, because the plots spread above and below
“zero” in Y-axis. The research result showed that (1) firm size has
significant impact toward company’s value, (2) leverage has no significant
impact toward company’s value, (3) profitability significant impact toward
company’s value. Simultaneously, firm size, leverage and profitability have
significant impact toward company’s value. Estimated regression result
showed the prediction ability from three independent variable toward
company’s value is 86.5%, while the other 13.5% influenced by other
variables.
