The Effect Of Profitability, Liquidity, And Debt Policy On Company Value In The Restaurant, Hotel, And Tourism Subsector Companies Listed On The Indonesian Stock Exchange From 2020-2023

Abstract

The purpose of this study is to analyze how the value of companies in the restaurant, hotel, and tourism industries listed on the Indonesia Stock Exchange is influenced by profitability, liquidity, and debt policy between 2020 and 2023. In an increasingly competitive business environment, understanding the factors that influence company value is crucial, especially following the significant impact of the COVID-19 pandemic, which caused many companies to face financial difficulties. The sample consists of 19 companies with a total of 76 observations. The statistical method used is EViews, with hypothesis testing employing the t-statistic. Data was obtained from the annual financial reports of companies listed on the Indonesia Stock Exchange. The independent variables in this study include profitability (measured by Return on Assets), liquidity (measured by Current Ratio), and debt policy (measured by Debt to Equity Ratio), while the dependent variable is company value measured by Price to Book Value. The results indicate that debt policy has a significant influence on company value, while profitability and liquidity do not show a significant influence. These findings provide important insights for company management in formulating financial strategies to enhance company value in the future. Additionally, this research is beneficial for investors or shareholders as a basis for investment decision-making, monitoring debt management policies, and minimizing investment risks to support the sustainable enhancement of company value