Financial performance towards value of firms in basic and chemicals industry

Abstract

This research aims to empirically prove the significant influences of financial performance towards value of firm. This research chose the population in basic and chemicals industry during the period of 2009-2014. Through purposive sampling and panel data, this research had 60 observations which was obtained through each firm. This research adopted quantitative research with random effect model, which used some analysis methods of descriptive analysis, classical assumption, multiple regression analysis and hypotheses testing. The result was concluded that firm size, earnings growth, current ratio, DER and ROA had partial significant influences towards PBV. Simultaneously, those five independent variables provided 66.594% influences while the rest 33.406% was influenced by other factors. Moreover, firm size was chosen as the most significant factor which influences price to book value.