ANALYSIS OF THE INFLUENCE OF FINANCIAL PERFORMANCE ON COMPANY VALUE IN THE COSMETIC AND HOUSEHOLD INDUSTRY IN 2015-2019

Abstract

Purpose: This study aims to analyze the effect of financial performance which includes: Liquidity, Leverage, Profitability, and the three financial ratios on Company Value in the cosmetic and household industries listed on the Indonesia Stock Exchange for the period 2015 - 2019. Methods: The sample in this study is a company PT. . Unilever Indonesia, PT. Kino Indonesia, PT. Victoria Care Indonesia, PT. Martina Berto, PT. Mustika Ratu, PT. Cottonindo Arista, and PT. Mandom Indonesia is listed on the Indonesia Stock Exchange (IDX) for the period 2015 – 2019. Analysis data: The sampling technique used in this study was a saturated sample. to find out the description of the effect of financial performance on firm value. The data is obtained from financial reports published by the Indonesia Capital Market Directory (ICMD). The data analysis method used is Multiple Linear Regression Analysis, Multicollinearity Test, Heteroscedasticity Test, Autoceleration Test, F Test, T-Test, and the coefficient of determination using Hypothesis Testing ( Dependent Variable (Y) and Independent (X = X1, X2, X3) ). Result and discussions: In the analysis and discussion of this study, it shows the results of the data analysis. Descriptive analysis. From the results of the study, Liquidity has two or more data from the same population, this is indicated by the standard deviation value which is smaller than the average value. As for leverage and profitability, the average data value is larger. The results of the classical assumption test on the multicollinearity test show that multicollinearity is not detected. The heteroscedasticity test showed that there were no heteroscedasticity symptoms in the regression model. The autocorrelation test concluded that the data has a negative autocorrelation. However, to fix it, it is concluded that there is still a negative autocorrelation. From the results of the above analysis Regression Equation: Y = 0.035+ 0.043 x1 – 0.001 x2 + - 0.004 x3+ e. T-test results show that all X has no effect on Y. F test results show that all X has an influence on Y. The coefficient of determination is known to have a coefficient of determination or R square 0, 183, or 18.3%. This figure means that all variables X simultaneously (together) affect variable Y. While the remaining 81.7% is influenced by other variables outside this regression equation or variables not examined. And from the discussion of all hypotheses, liquidity, leverage, profitability, and three have no effect on firm value.

Conclusion: The results of this study indicate that liquidity itself has no effect on firm value. This can be proven that the cash ratio should have increased significantly, which means that the company is able to manage its current assets to cover its current liabilities. Meanwhile, leverage and probability affect the value of the company.