Influence of Investment Decisions (PER), Policy of Dividend (DPR) and Interest Rate against Firm Value (PBV) at a Registered Manufacturing Company on Indonesia Stock Exchange in 2015-2018

Abstract

The aim of this research is to determine the influence simultaneously and partially between Investment Decisions, policy of dividend and Interest Rates on company value on the Indonesia Stock Exchange in 2015-2018. The research method used is quantitative analysis method. Data collection method in this research is documentation method. The population involved in this study are manufacturing companies listed on the Indonesia Stock Exchange in 2015-2018. The purposive sampling method was used in the research sampling. The variables of this study consist of three independent variables, namely the Investment Decision proxied by PER (X1), Dividend Policy proxied by DPR (X2), the Interest Rate (X3) and company value proxied by PBV (Y) as the dependent variable. The conclusion in this study is that simultaneously PER (X1), DPR (X2), and the Interest Rate (X3) have a significant effect on Firm Value (PBV). Partially, each independent variable (PER, DPR and Interest Rate) has a positive and significant effect on Firm Value (PBV). The coefficient of determination (R2) is 40.9% which means Investmen Decision (PER), Dividend Policy (DPR), and Interest Rates can affect the Firm Value (PBV) by 40.9% while the remaining 59.1% is influenced by factors. other factors not examined in this study.