The Effect of Debt Policy and Profitability on Firm Value at PT. Sumber Alfaria Trijaya Tbk for the 2016-2023 Period
Keywords:
Price to Book Value, debt policy, ROE, DER, and Company Value
Abstract
The influence of profitability (ROE) and Debt Policy (DER) in estimating Company Value (PBV) at PT Sumber Alfaria Trijaya Tbk for the period 2016-2023 was studied in this quantitative research using multiple linear regression analysis tools. Based on the t-test, it was found that DER has a negative and significant influence on PBV (Sig. 0.000 < 0.05), while ROE does not show a significant influence partially (Sig. 0.519 > 0.050). However, the results of the F test indicate a significant influence together from the two explanatory variables on Company Value (Sig. 0.000 < 0.05). The R square value obtained is 60.3% which describes the predictive contribution capacity of the independent variable
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Brigham, E.F., & Houston, J.F. (2022). Fundamentals of financial management (16th ed.). Cengage Learning.
Cindy, MT (2023). The effect of dividend policy, debt policy, and profitability on firm value. Journal of Accounting Science and Research, 12(7), 1–20.
Creswell, J. W., & Creswell, J. D. (2023). Research design: Qualitative, quantitative, and mixed methods approaches (6th ed.). SAGE Publications.
Ghozali, I. (2021). Multivariate analysis application with IBM SPSS 26 program (10th ed.). Diponegoro University Publishing Agency.
Hair, JF, Black, WC, Babin, BJ, & Anderson, RE (2022). Multivariate data analysis (9th ed.). Cengage Learning.
Myers, S. C. (2001). Capital structure. Journal of Economic Perspectives, 15(2), 81–102.https://doi.org/10.1257/jep.15.2.81
Putri, VR, & Rachmawati, A. (2017). The effect of profitability, dividend policy, debt policy, and firm age on firm value in the non-bank financial industry. Journal of Management Science & Economics, 10(1), 14–21.https://doi.org/10.35384/jime.v10i1.59
Riana, PS, & Sairin. (2024). The effect of debt policy and profitability on company value at PT Astra International Tbk for the period 2013–2022. JORAPI: Journal of Research and Publication Innovation, 2(2), 1241–1250.
Rosmaneliana, D., Evadine, R., Silalahi, D., & Hastalona, D. (2024). The effect of dividend policy, debt policy, and company size on company value in manufacturing companies listed on the Indonesia Stock Exchange in 2016–2020. Management Studies and Entrepreneurship Journal, 5(3), 3032–3044.
Sapulette, SG, & Senduk, IF (2022). The effect of dividend policy, debt policy, and profitability on firm value. KUPNA Journal, 3(1), 1–18.
Spence, M. (1973). Job market signaling. Quarterly Journal of Economics, 87(3), 355–374.https://doi.org/10.2307/1882010
Sugiyono. (2022). Quantitative, qualitative, and R&D research methods (2nd ed.). Alfabeta.
Published
2026-06-12
How to Cite
Kania Dewita Permana, Irvan Yoga Pardistya, & Nana Diana. (2026). The Effect of Debt Policy and Profitability on Firm Value at PT. Sumber Alfaria Trijaya Tbk for the 2016-2023 Period. International Journal of Economics, Business and Innovation Research, 5(04), 799-809. https://doi.org/10.63922/ijebir.v5i04.4097
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