INFLUENCE OF MARGIN PROFIT NET AND DEBT TO EQUITY RATIO ON THE VALUE OF CONSTRUCTION COMPANIES LISTED IN INDONESIA STOCK EXCHANGE (BEI) 2014-2017

Abstract

This study aims to investigate the effect of Net Profit Margin (NPM) and Debt to Equity Ratio (DER) on the value of construction companies listed on the Indonesia Stock Exchange (BEI) for the period 2014-2017. The hypothesis in this study was tested using multiple regression analysis with SPSS software. The results of this study are several findings. The first finding is that NPM has a positive effect on firm value, which indicates that the greater the NPM company, the profits generated by the company are greater. This will increase the attractiveness of the company more attractive to investors and impact on the increase in the value of the company. The next finding is also in line with previous findings, namely DER has a positive effect on the value of the company.