ANALYSIS THE INFLUENCE OF FIRM SIZE, LEVERAGE AND PROFITABILITY TOWARD VALUE OF THE COMPANY ON FOOD AND BEVERAGE INDUSTRY LISTED IN INDONESIA STOCK EXCHANGE PERIOD 2006-2012

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.