Preparation of Papers for The International Journal of Business Management and Technology

Autocorrelation testing using the Run test test with a significance value greater than 0.05, which is 0.118, it can be concluded that there is no autocorrelation in the regression model.

Table 4.5

Multiple Linear Regression Analysis Test

Source: Secondary Data Processed, 2022

Based on the results of the multiple linear regression analysis, it is known that the multiple linear regression equations are:

0.003 DPR + 1,449 SIZE + e

The regression equation has the following meaning:

The constant value (α) is -7.741 which means that if the profitability, liquidity, activity, dividend policy, and firm size have a value of 0 (zero), then the firm value level remains at -7.741.

The value of the regression coefficient on the profitability variable is 0.188 with a positive sign (+). This shows that if profitability increases by 1 (unit) then the value of the company will increase by 0.188.

The value of the regression coefficient on the liquidity variable is -0.164 with a negative sign (-). This shows that if liquidity decreases by 1 (unit) then the value of the company will decrease by -0.164.

The value of the regression coefficient on the activity variable is 0.077 with a positive sign (+). This shows that if the activity increases by 1 (unit) then the value of the company will increase by 0.077.

The value of the regression coefficient on the dividend policy variable is -0.003 with a negative sign (-). This shows that if liquidity decreases by 1 (unit) then the value of the company will decrease by -0.003.

The value of the regression coefficient on the firm size variable is 1.449 with a positive sign (+). This shows that if the activity increases by 1 (unit) then the value of the company will increase by 1.449

Table 4.6

F Uji test

Preparation of Papers for The International Journal of Business Management and Technology

Based on the results of the f test in the table above, it is obtained that Fcount of 22,222 is greater than Ftable of 2,368 with a significance of 0.000 or less than 2,368. so it can be concluded that simultaneously (simultaneous) the variables of profitability, liquidity, activity, dividend policy, and firm size have an effect on firm value. thus the regression model used in this study shows goodness of fit.

Table 4.7

Uji test

Based on the results of the t test, profitability, liquidity, activity, and firm size have a significance value smaller than the expected significance level (0.05), so these four variables affect the firm value. While the dividend policy has a significance value greater than the expected significance level (0.05), the dividend policy has no effect on firm value.

4.8

Coefficient of Determination Test (R2)

Source: Secondary Data Processed, 2022

Based on table 4.10 the test results show that the coefficient of determination ( R2) is 0.643 or 64.3%. This means that the variable firm value is influenced by profitability, liquidity, activity, dividend policy, and firm size by 64.3% and the remaining 35.7% is influenced by other variables.

Discussion of Analysis Results

1. The effect of profitability on firm value

The calculation of the results of the research on the profitability variable shows the value of thitung6,345 with a significance value of 0.000 so that thitung >ttabel (6,345 > 2,000) with sig < 0.05 (0.000 < 0.05) it can be concluded that the profitability variable has an effect on firm value. These results indicate that the first hypothesis (H1 )states "There is an effect of profitability on firm value in mining companies listed on the Indonesia Stock Exchange in 2016-2020." proven true.

Profitability has an effect on firm value. Profitability is a company's ability to run its operations to earn a profit. If the company's profitability or profits increase, it will increase the value of a company, and vice versa if the company's profitability or profits decrease, the company's value will also decrease (Setyowati & Nursiam 2014). The higher the level of profitability of a company can increase the value of the company in the eyes of investors. This result is in line with the signaling theory which states that the higher the profitability obtained by the company, the better the profits for the company, and a positive signal by the market because it can increase the value of the company in the eyes of investors.

The results of this study are consistent with the research of Aswari & Nursiam (2020), Tiana & Triyonowati (2020), Widyasari & Nursiam (2020) which state that profitability has an effect on firm value. While this research is inconsistent with Oktarima's research (2017) which concludes that profitability has no effect on firm value.

2. Effect of liquidity on firm value

The calculation of the results of the research on the liquidity variable shows the value of thitung 2.260 with a significance value of 0.028 so that thitung >ttabel (2,260 > 2,000) with sig < 0.05 (0.028 < 0.05) it can be concluded that the liquidity variable has an effect on firm value. These results indicate that the second hypothesis (H2 )which states "There is an influence of liquidity on the value of the company in mining companies listed on the Indonesia Stock Exchange in 2016-2020." proven true.

Liquidity affects the value of the company. Liquidity is a ratio used to describe the company's ability to meet obligations using its assets. The more funds available to the company can be sufficient to pay dividends, finance operations and investments, the higher the investor's perception of the company's performance. This is in line with the signaling theory which states that the demand for shares from investors for a company will cause an increase in the market value of the stock and can describe the high value of the company concerned.

The results of this study are in line with research conducted by Oktaviarni, Murni, Suprayitno (2019), Putra & Lestari (2016) which states that liquidity affects firm value, but this research is not in line with Indrayani, Endiana, & Pramesti (2021) which states that liquidity has no effect on firm value.

3. Effect of activity on firm value

The calculation of the results of the activity variable research shows the value of thitung 3.851 with a significance value of 0.001 so that thitung >ttabel (3,851 > 2,000) with sig < 0.05 (0.001 < 0.05) it can be concluded that the activity variable has an effect on firm value. These results indicate that the third hypothesis (H3 )states "There is an effect of activity on company value in mining companies listed on the Indonesia Stock Exchange in 2016-2020." proven true.

Activities affect the value of the company. The activity ratio is a comparison between sales and total assets of a company where this ratio describes the speed of total asset turnover in a certain period. The activity ratio is used to assess the company's ability to carry out daily activities (Kurniawati, 2021). This is in line with the assumptions of the signaling theory which states that activities in the company can run well shown in fast asset turnover and can support net sales activities so as to increase profits, and provide signals to the market that make investors interested in buying the company's shares. can increase the value of the company.

The results of this study are in line with Kurniawati (2021), Aulia (2021) who stated that activity had an effect on firm value, but Agustina's research (2017), Tiana & Triyonowati (2020) stated that activity had no effect on firm value.