Determining Factors of Corporate Value in Mining Sector Companies on the Indonesia Stock Exchange

Abstract

The Company’s main goal is to increase corporate value, namely the welfare of the owner which is represented by the higher share price. Therefore, in this study, corporate value is represented by the price to book value ratio. The purpose of this research is to examine the factors that determine corporate value. Factors that are thought to influence corporate value are profitability as measured by return on assets (ROA), institutional ownership, number of independent commissioners, leverage and company size. The population in this study are companies registered in the mining sector with a sample of 15 companies with an observation period of 5 years (2016-2020). The hypothesis test uses multiple regression analysis with a significance level of 0.05. The results showed that only one variable had no effect on corporate value, namely profitability, while the variables of institutional ownership, independent commissioners, leverage and company size had a significant effect on corporate value.