EFFECT OF PROFITABILITY ON FIRM VALUES WITH MANAGERIAL OWNERSHIP AS A VARIABLE CONTROL (Construction and Building Sub Sector Listed in the Indonesia Stock Exchange for the 2014-2018 Period)

1Vincentia Wahju Widajatun, Tsaninisa Fatimah Rahmadzikrishafira, Nugi Mohammad Nugraha, Neneng Susanti

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Abstract:

Corporate perception of the value of the company. Firm value can be measured by the state of the company's stock price in the market. Reflections on evaluations by the public on the performance of companies in real terms create the creation of company stock prices in the market. Measurement of firm value can be done with several calculations, one of which is the Tobin's Q ratio. In the past 5 years the value of the Construction and Building sub-sector companies has continued to decline. This study aims to analyze the effect of profitability on firm value by the presence of managerial ownership control variables in the construction and building sub-sector companies in the 2014-2018 period. ROE has a significant effect on Firm value.With the Managerial Ownership control variable there is an increase in the coefficient of determination.

Keywords:

Profitability, Managerial Ownership and Firm Value

Paper Details
Month2
Year2020
Volume24
IssueIssue 2
Pages8842-8851