DETERMINANT MODEL OF FIRM VALUE

Abstrak

This research is intended to analyze and answer the existence of research gaps among researchers as well as the phenomenon that occurs where leverage as an element of risk is not a concern for institutional ownership and the availability of company liquidity. Another thing is that leverage as an element of risk is not a consideration for capital market investors. This type of research is quantitative descriptive with a panel data multiple regression analysis method using research objects of companies listed on the Indonesia Stock Exchange (IDX) in the Food and Beverage business sector. By using a purposive sampling method, 9 companies were selected. This research formula is to maximize Firm Value through Leverage as an intervening variable. There are two research models that are integrated into one and each goes through model selection test stages, Chow Test, Hausman Test, and Lagrange Multiplier Test. First model results; Ownership Structure can explain the impact that occurs on Leverage and these results confirm the applicable theory. Another result in the first model is not as in the existing theory, namely that Liquidity cannot explain the impact that occurs on Leverage. Second model results; Ownership Structure can explain the impact that occurs on Firm Value while the opposite is true for Liquidity. Leverage as an intervening variable functions to mediate Firm Value. It is hoped that these results can help as a guide for public companies to obtain maximum Firm Value.