The Analysis of Internal Company Factors and Company Value (Case Study on Manufacturing Companies Listed in Indonesia Stock Exchange From Period 2009 – 2011)

Abstract

The purpose of this research is to examine some internal factors of companies that have influences toward company values. Those internal factors are dividend policy, capital structure, profitability and size. The proxy for each factor respectively is Dividend Payout Ratio, Debt to Equity Ratio, Return On Investment and the natural log of total asset. The population of this research is all manufacturing companies listed in the Indonesia Stock Exchange during 2009 – 2011. The research sample that fulfill the requirement is 80 companies from the total 129 of manufacturing companies during 2009 – 2011. All of the data that are used to predict the influence of internal factors of the company toward company value were taken from the ICMD 2012.The research sample have passed the classical assumption test which consists of normality test, multicollinearity test, autocorrelation test and heteroscedasticity test. The research used multiple regression analysis using SPSS ver.20 then the value of f-test and the t-test were calculated. The result shows that the dividend policy, profitability, capital structure and size all of them together have influence toward company value with the value of adjusted R2 is 47,4% and partially only dividend policy has no influence toward company values its result supported the residual of dividend theory and the other three variables: capital structure has positive and significant influence toward company value it support the theory of tradittional approach of capital structure, profitability has positive and significant influence toward company value, the profit is goal of the financial manager therefore the profitability have the higher influence toward company value and size has positive and significant influence toward company value, the stable company is favorable for the investor because they can fulfill their obligation on time.