Sustainable Company Value Through Price Earning Ratio, Dividend Payout Ratio And Profitability With Capital Structure As A Moderating Variable

Abstract

Financial performance can be assessed by looking financial reports. Financial performance that can affect company value includes the level of profitability and the level of liquidity of a company. This study discusses Sustainable Company Value through Price Earning Ratio, Dividend Payout Ratio and Profitability, with Capital Structure as a Moderation Variable.The plan for measuring the level of technological readiness used in this study is to demonstrate the concept of important functions and characteristics analytically and experimentally. (Technology readiness level 3)The purpose of this research is to see the effect of price earning ratio, dividend payout ratio, profitability on company value with capital structure as a moderating variable, which functions as an independent variable, namely price earning ratio, dividend payout ratio, and profitability proxied by return on equity. The dependent variable is the firm's value which will be calculated using Tobin's Q formula, and what functions as a moderating variable is the capital structure.Determination of the sample in this study using purposive sampling method. The property and real estate sector as a sample of this study with 90 samples, the period of this research is 3 years from 2017 to 2019, the data analysis of this study uses moderated regression analysis. The research method used in this research is quantitative method and analysis method which is planned to be used is descriptive analysis using statistical tools SPSS 21. The results of the study indicate that Price earning ratio has no effect on company value, profitability affects company value. Dividend Payout Ratio has no effect on company value. Capital structure as a moderator cannot affect the relationship between price earning ratio and company value. Capital structure as a moderator affects the relationship between profitability and company value. Capital structure does not moderate the relationship between Dividend Payout Ratio and company value.

Keywords: price earning ratio, profitability,Dividend Payout Ratio captital structure, company value, moderated

DOI: 10.7176/EJBM/13-13-08

Publication date:July 31^st 2021