Effect of Implementation of PSAK 72, ROA, Company Size on Company Value in LQ-45 Indexed Companies

Abstract

The purpose of this research was to analyze the effect of applying PSAK 72 on company value in companies indexed LQ-45 on the IDX. This type of research is descriptive using secondary data. The company population is companies listed on the IDX from 2017-2020, the research sample uses a "purposive sampling" technique using companies indexed at LQ-45. Hypothesis testing is counducted using the "E-Views" software. The partial test results indicate that the application of PSAK 72 has no significant effect on company value, while ROA has a positive effect on company value, and company size has a negative effect on company value. The results of the model indicate that the application of PSAK 72, ROA, and company size have a significant effect on company value and when viewed from the adjusted R-squared value, the application of PSAK 72, ROA and company size can predict company value by 94%, the remaining 6% is influenced by other factors that have not been studied.The managerial implication of this research is that it can be used as a consideration for management in making adjustments to changes to PSAK 72 in the financial statements so as to minimize the impact on company value

Earnings Per Share and Return on Assets as predictors of Stock Price for Transportation Companies in Indonesia

“…After the costs of funding assets are excluded from the analysis, known as Return on Assets (ROA). The productivity of the company's borrowed and owned capital is seen from the return on investment (Mandasari & Rahardja (2022). This ROA ratio measures the effectiveness of the company's total operations (Paramita, 2020).…”