The Effect of Investment Opportunity Set and Firm Size on Firm Value: Study on Companies Registered in Jakarta Islamic Index Year 2017-2020, Indonesia

Abstract

The following research has the objective of testing the effect of the Investment Opportunity Set and company size with firm value. In carrying out the research, it was carried out on business actors who were on the Jakarta Islamic Index list in the 2017-2020 period. The sample used is as many as 116 companies that are on the Jakarta Islamic Index list in the 2017-2020 period. The use of the sampling technique is purposive sampling. The type of data is in the form of secondary data obtained through the website idx.co.id. Multiple linear regression techniques were used to analyze the data. In this study, the dependent variable is firm value while the independent variable is the Investment Opportunity Set (IOS) and company size. Based on the resulting analysis, the Investment Opportunity Set (IOS) has a positive and significant effect on firm value, and firm size does not influence firm value.