The Effect of Growth, Managerial Ownership and Profitability toward Firm Value

Abstract

The company's growth is a sign of a company that has profitable aspects, and investors will expect the rate of return from the investments made to show good development. Managerial ownership is the management party who actively participates in decision making such as managers, directors or commissioners and is also given the opportunity to own company shares. Profitability is also believed that it will increase firm value. This study aims to investigate the effect of company growth, managerial ownership and profitability on firm value in companies listed in Indonesian Stock Exchange. This study took 39 samples of property and real estate companies for the period 2017 to 2019 using purposive sampling method. The data analysis technique in this study is multiple linear regression. The result of the study showed that growth and profitability have a positive and significant effect on firm value. In contrast, managerial ownership has negative and not significant effect on firm value.