Abstract :
This research is a type of quantitative associative research on consumer goods companies listed on the Indonesia Stock Exchange in 2018 - 2020. This study takes the title "The Effect of External Funding on Firm Value (Empirical Study on Consumer Goods Companies listed on the Stock Exchange in 2018-2020)".
The purpose of this study was to analyze the effect of total debt on assets, long-term debt on assets, total debt on equity, long-term debt on equity on firm value using the control variable of commissioner size. The population used in this study are all consumer goods companies listed on the Indonesia Stock Exchange in 2018-2020. For data analysis using classical assumption test, descriptive test, panel data regression test, determination test, and t-test. Determination of the sample using the purposive sampling method. The sample in this study was 44 companies.
The research results show that the variable total debt to assets, long-term debt to assets, and long-term debt to equity have an effect on firm value. Meanwhile, the total debt to equity variable has no significant effect on firm value in consumer goods companies listed on the Indonesia Stock Exchange in 2018 - 2020.
This study implies that from the four variables tested, the total debt to assets, long-term debt to assets, and long-term debt to equity variables have a relationship with firm value so that investors can use it as a factor to consider in making investment decisions for a company. . While the total debt to equity variable has no relationship to firm value. Investors can ignore these variables in making investment decisions for a company.
Keywords: Total Debt to Assets, Long-Term Debt to Assets, Debt to Equity, Long-Term Debt to Equity, Firm Value.