The Role of Internal Factors in Determining the Value of Manufacturing Company

Abstract

The objective of this study was to determine the effect of internal factors in the cases of liquidity, activity, leverage, asset size to the value of manufacturing company. This research was conducted at the Indonesia Stock Exchange. The object of research was the financial statements of manufacturing companies in the form of financial statements for the period 2010 -2015 contained in the Indonesian Capital Market Directory, as well as other data. To test the hypothesis of the effect of variable X to variable Y, the F test was simultaneously used and to test the hypothesis of the effect of variable X to variable Y, the t test was partially used. The data used in this research were involving the secondary data obtained from Indonesian Capital Market Directory for the period of 2010 -2015, Webb Jakarta Stock Exchange, Bank Indonesia and the Central Bureau of Statistics. Samples were taken by purposive sampling as many as 38 companies for 6 years observation. The result of the research showed that liquidity and activity had no effect to Company's Value. However, the asset size had positive and significant influence to Company's Value. In addition, leverage had negative and significant effect to Company's Value.