The Effect of Profitability and Leverage on LQ-45 Indexed Firm Value Before and During the Pandemic
. Paulus *
Faculty of Economic and Business, University of Lampung, Indonesia.
Agrianti Komalasari
Faculty of Economic and Business, University of Lampung, Indonesia.
Reni Octavia
Faculty of Economic and Business, University of Lampung, Indonesia.
*Author to whom correspondence should be addressed.
Abstract
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.
Keywords: Profitability, leverage, firm value, LQ45