Effect Of Return On Equity, Debt To Asset Ratio, And Inflation Rate On The Value Of The Company

Abstract

The approach in this study is in the form of quantitative descriptive research, and this type of research is included in the category of explanatory research. This study aims to determine the effect of return on equity, debt to asset ratio, and inflation rate on company value in Consumer Goods Sub-Sector Manufacturing Sector Companies   listed on the Indonesia Stock Exchange.The sample of research in this study was 21 companies. The research period is from 2018 to 2021. The research methods used in this study are descriptive statistical tests, classical assumption tests, multiple regression tests, and hypothesis tests. The results showed that: 1) return on equity did not have a significant effect on the value of the company in the Consumer Goods Sub-Sector Manufacturing Sector Company; 2) Debt to Asset Ratio has a significant effect on the value of the company in the Consumer Goods Sub-Sector Manufacturing Sector Company; 3) inflation has an insignificant effect on the value of companies in the Manufacturing Sector of the Consumer Goods Sub-Sector; 4) simultaneously Return On Equity (ROE), Debt to Asset Ratio (DAR) and Inflation together have no significant effect on stock prices, this suggests that the hypothesis is not proven.