THE EFFECTS OF PROFITABILITY AND OPERATING CASH FLOW ON FIRM VALUE STUDY: AT THE PLANTATION SECTOR IN INDONESIA STOCK EXCHANGE PERIOD 2016-2017

Abstract

The objective of this research is to determine the significance of the effect of profitability measure by ROA, ROE, EPS, ROCE and operating cash flow on the value of the firm with market capitalization as variable control. The population of this study is all companies in the plantation sector listed in Indonesia Stock Exchange period 2016 - 2017. The sample selection in this study using non-probability sampling method with the type of purposive sampling technique which is the technique of determining the sample based on certain criteria. The data used in this study are secondary data, the stock ownership structure data, the number of audit committee, the board of directors, the proportion of independent commissioners, the number and price of shares and the annual financial statement data of plantation companies listed on Stock Exchanges of Indonesia. The finding in this study are: 1) Return on Asset is positive and significant effect on firm value, 2) Return on Equity is positive and significant effect on firm value, 3) Earning per share is positive and significant effect on firm value, 4) Return on Capital Employee is positive and significant effect on firm value, and 5) operating cash flow is positive and effect on firm value.