THE EFFECT OF INTANGIBLE ASSET INVESTMENT TOWARD FIRM VALUE (An Empirical Study on Manufacturing Companies listed in Indonesia Stock Exchange (IDX) 2012-2016)

Tiara Gita Tirzana B1024141011 Tirzana

Abstract


Abstract

This research aims to determine and ascertain the effect of intangible asset toward firm value with profitability, leverage, and firm size as the control variables in manufacturing sector listed in Indonesia Stock Exchange 2012-2016. The independent variable X1 is intangible asset then the control variables are profitability (proxy ROA), leverage (proxy DER), and firm size.  The dependent variable is firm value with Tobin’s Q as the indicator. The data used in this research is secondary data derived from annual reports of manufacturing companies. The sample is from purposive sampling, means the sample chosen by the criteria. The criteria chosen 32 companies in 5 years. This study using E-Views version 9.5 as the software to test the regression. This research using random effect model to test the hypothesis. The results of this study indicate that there is positive significant relationship of intangible asset toward firm value. The result of control variable for profitability and leverage are positive significant toward firm value. Meanwhile, the result of firm size indicates negative significant relationship on firm value as control variable.

 

Keywords: Intangible Asset, Profitability (ROA), Leverage (DER), Firm Size, Firm Value (Tobin’s Q).

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