The Effect of Profitability and Leverage on LQ-45 Indexed Firm Value Before and During the Pandemic
. Paulus, Agrianti Komalasari, Reni Octavia
Asian Journal of Economics, Business and Accounting · pp. 184–190 · Published 14 Oct 2022
10.9734/ajeba/2022/v22i23864Abstract
The covid-19 pandemic has had an economic impact, including companies listed on the stock exchange. The purpose of this research is to obtain empirical evidence whether profitability and leverage have a positive effect before and during the covid-19 pandemic. The population of this study are companies listed on the LQ45 index. This study is a quantitative study with 90 observational data with an observation period of 2018 to 2021. The results showed that before the pandemic, profitability had a positive effect on firm value, leverage and firm size had no effect on firm value. During the pandemic, profitability and leverage have a positive effect on firm value, but size has no effect on firm value. In an additional test using the Paired Sample T-Test method, it showed that there was a significant average decrease in profitability, leverage, and firm value. However, in the LQ45 indexed firm size, there was no significant difference before and during the pandemic.
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