THE LEVERAGE OF FINANCIAL PERFORMANCE TOWARDS VALUE OF FIRM LISTED IN LQ45 INDEX IN INDONESIA STOCK EXCHANGE (2015-2017)

Abstract

This study aims to prove empirically the effect of current ratio, debt to equity ratio and return on assets both partially and simultaneously the company's price towards book value that has been categorized into LQ45 index on the Indonesia Stock Exchange (IDX) for the 2015-2017 period. The populations of this study are all companies that included in the LQ45 index in Indonesia Stock Exchange. By using the purposive sampling method, obtained 25 companies that meet the criteria of purposive sampling. This study uses multiple linear analyses as an analysis method. The results of this research indicate that current ratio has a negative influence on firm value, Debt to Equity Ratio and Return On Assets have a positive influence on firm value. Each variable has a partial influence on the value of the company. And simultaneously Current Assets, Debt to Equity Ratio and Return On Assets have a significant effect on price to book value.