Research Paper
Year: 2020 | Month: July | Volume: 7 | Issue: 7 | Pages: 31-37
Model Simultanity Company Value and Stock Price in Securities Company in Indonesia
Cahyo Pramono
Management Study Program, Social Science Faculty, Universitas Pembangunan Panca Budi, Medan, Indonesia, 20122
ABSTRACT
Company value is the investor's perception of the level of success of the company that is often associated with stock prices. High stock prices make the value of the company also high and increase market confidence not only on the company's current performance but also on the company's prospects in the future, by increasing the value of the company, the welfare of the owners will also increase. This study aims to analyze how much the effect of profitability, dividend policy, capital structure, company size, sales growth, free cash flow on firm value and stock price. in this study, researchers used OLS (Ordinary Least Square) method, simultaneous/2SLS method (Two Stage Least Square) and panel regression method (Panel Regression). Which aims to analyze the effect of independent variables on the dependent variable in the short and medium term. Profitability, company size, free cash flow, stock prices have a positive and insignificant effect, capital structure has a positive and simultaneously significant effect on firm value. Profitability has a significant negative effect, capital structure has no significant negative effect, dividend policy, sales growth, firm value positive effect is not simultaneously significant towards stock prices.
Keywords: Company Value, Stock Price, Profitability, Dividend Policy, Capital Structure, Firm Size, Sales Growth, and Free Cash Flow, OLS, Simultaneous (2SLS) and Panel Regression.
[PDF Full Text]