ANALYSIS OF DEBT POLICY FACTORS ON FIRM VALUE FOR TECHNOLOGY COMPANIES IN IDX

Abstract

The focus of this research is to understand the components of debt policy that influence firm value. This research is relevant in the context of Sustainable Development Goal (SDG) number 8, which emphasizes inclusive and sustainable economic growth. This is because debt policy can affect a company's financial health, which in turn can affect overall economic growth. This research is quantitative research from secondary data. To meet the criteria for this research, a purposive sampling method was used to sort data from the annual financial data of companies listed on the IDX in the technology sector. The total sample is 60 data from 12 technology sector company objects registered on the IDX for the 2019-2020 period. The method used is the multiple linear regression method and path analysis using SPSS 20. The independent variables used are profitability (ROE), asset structure (FAR), liabilities (CR), and the dependent variable is company value (PVB). Meanwhile, debt policy (DEBT) is an intervening variable. The results of this research found that profitability (R0E) had a significant negative effect on debt policy and company value, asset structure had a significant negative effect on debt policy and firm value, liabilities (CR) had no effect on debt policy and company value. Profitability and asset structure influence company value through debt policy.