How Audit Opinion Increase Value Added in Indonesian Sustainability Index Corporation

Abstract

A high company value indicates a good company performance and reputation which gives a positive signal to investor that affect decision making in investing. The purpose of this research was to examine the influence of profitability, company size and audit factors such as public accounting firm size and audit opinion on firm value. This research was conducted on companies registered as members of the SRI-KEHATI index, which is listed company that not only has high performance but also sustainability concern. The method used in determines the sample was purposive sampling. Multiple linear regression analysis methods including classical assumption tests and hypothesis testing was used in testing the data. The results of this research indicates that profitability and audit opinion have a negative and significant influence on firm value, while firm size and public accounting firm size have a positive and significant influence on firm value.