THE EFFECT OF LIQUIDITY, LEVERAGE, PROFITABILITY, DIVIDEND PAYOUT RATIO, AND PRICE EARNING RATIO ON FIRM VALUE

Abstract

This research aims to examine the influence of liquidity, leverage, profitability , dividend
payout ratio, and price earning ratio to companies’ value (Tobin’s – Q). The research samples
are non financial companies listed in the index LQ 45 on the IDX during the period of 2015-
2017 selected by using purposive sampling method. The research analysis applied multiple
linear regressions. The results of normality test, multicolinearity, autocorrelation and
heteroscedasticity show that the regressions model which is free from bias has been fulfilled.
The result of the research shows that current ratio, debt equity ratio, dividend payout ratio no
affect to the Tobin’s Q. Return on equity and price earning ratio have a positive effect on
Tobin’s Q.