Factors that Infl uence the Firm Value in Consumer Goods Sector Companies Listed on the Indonesia Stock Exchange

* Corresponding author, amilussholikhah57@gmail.com ABSTRACT Firm value is the price of company’s stock in the capital market that must be paid by an investor if he wants to own the company. Every company aims to maximize the fi rm value because with a high fi rm value, investors assume that the company’s performance is better and has prospects in the future so that investors will be interested to invest in the company. Optimizing the fi rm value can be done with the implementation of fi nancial management functions. Financial management involves decisions made by the company. This research aims to fi nd out the infl uence of dividend policy, debt policy, investment decision, and profi tability on the fi rm value. The population in this study is consumer goods sector companies listed on the Indonesia Stock Exchange (IDX) period 2013-2017. A sample of 12 companies is obtained by using purposive sampling method. Analysis techniques used are statistical analysis and multiple linear regression analysis with SPSS 16. The results of this study show that the variables of dividend policy, debt policy, investment decision, and profi tability have an effect on the fi rm value.


INTRODUCTION
The results of the research on the fi rm value in the consumer goods industry sector, based on news release from www.cnninonesia. com on January 9, 2017, show that in January 2017, the index of the consumer goods sector managed to become the strongest stock sector index. According to Reza Priyambada, a senior analyst at Binartha Securities, the strengthening of the consumer goods sector index was due to buying action of market players because they considered that the stock prices of several companies, such as PT Unilever Indonesia Tbk (UNVR) and PT Indofood CBP Sukses Makmur Tbk (ICBP), had been relatively low since December 2016.
The consumer goods industry sector has indeed proven its success. However, according to the Ministry of Industry as reported on the site www.kemenperin.go.id on May 28, 2018, this sector was inseparable from the problems faced by several companies in it, that is, the decline in the stock price of PT Tiga Pilar Sejahtera Food Tbk (AISA) due to investigation carried out by the police in the AISA subsidiary warehouse, PT Indo Beras Unggul, having business in rice industry and trade on Thursday, July 20, 2017. PT Indo Beras Unggul allegedly committed fraudulent practices in trading rice by replacing the subsidized rice packaging with a quality rice brand packaging.
The consumer goods company which also experienced a decline in stock price was PT Kalbe Farma Tbk (KLBF), one of the pharmaceutical companies in Indonesia. The decline in stock price was due to a problem at the Siloam Hospital, Karawaci in Tangerang, where two patients died after being given a spinal buvanest anesthetic drug.
Every company aims to maximize the fi rm value. Optimizing the fi rm value can be done by implementing fi nancial management functions, where one fi nancial decision will have an impact on other fi nancial decisions. Financial management includes decisions made by companies such as dividend policy, debt policy and investment decision.
Dividend policy is how much profi t must be paid to shareholders and how much profi t should be reinvested in the company. Based on the bird in the hand theory, investors prefer profi ts distribution in the form of dividends to capital gains because investors assume that the risk of dividends is not as large as capital gain. The existence of high dividend distribution from the company makes many investors interested in investing their capital, so that it can cause the company's value to increase. However, based on the tax preference theory, the high dividend distribution makes the tax on dividend profi ts also high. Therefore, investors prefer capital gains because they can delay tax payments.
Research conducted by Priscilia, Sientje and Victoria (2015) states that dividend policy has a signifi cant effect on fi rm value. However, it is inversely proportional to the research conducted by Putri, Parengkuan and Johan (2016) which states that dividend policy has no effect on fi rm value.
The value of the company is also infl uenced by the debt policy set by the company. Debt policy is a company policy to use debt as a source of funding. The use of debt can cause fi rm value to decline because the more the companies rely on debt as a source of funding, the higher the costs to be borne, such as bankruptcy costs, because the higher the debt, the higher the probability of bankruptcy. On the other hand, the use of debt can also increase the fi rm value because the company can save taxes so that any debt policy set by the company can affect the fi rm value.
Research by Priscilia, Sientje and Victoria (2015) states, that debt policy has a signifi cant effect on fi rm value. However, it is inversely proportional to the research conducted by Ika, Rina and Ilham (2015) which states that debt policy has no signifi cant effect on fi rm value. Another policy that can affect fi rm value is investment decisions. Investment decisions are decisions made by the company to issue funds other than for operational activities and can provide benefi ts to the company in the future. Based on the signaling theory, when a company decides to invest, it can provide a positive signal that describes the growth of the company in the future, so that many investors will be willing to invest their capital. Thus, this can increase the fi rm value.
Another research by Ni Luh & I Ketut (2014) and Suroto (2016) states that investment decisions have a signifi cant positive effect on fi rm value. However, it is inversely proportional to the research conducted by Safi tri and Lailatul (2014) which states that investment decisions have a negative and insignifi cant effect on fi rm value. In addition to investment decisions, the fi rm value is also infl uenced by fi nancial performance, one of which is the level of profi tability of the company. In order to run its business, a company should be in profi table condition. Based on signaling theory, companies that have high profi tability will provide a positive signal about better company performance, so investors will be more interested in investing in the company. Thus, it will affect the fi rm value.
Also, a research by Ayu & Ary (2013) states that profi tability has a signifi cant positive effect on fi rm value. However, it is inversely proportional to the research conducted by Titin Herawati (2013) which states that profi tability has a signifi cant negative effect on fi rm value.
As described above, the researchers were interested in conducting a research entitled "Factors that Affect the Firm Value in Consumer Goods Sector Companies Listen on the Indonesia Stock Exchange period 2013-2017"

Signaling theory
According to Brigham and Joel (2011: 185), Signaling Theory is an action taken by management for investors in looking at the company's prospects in the future. Signaling theory also explains the provision of information that is benefi cial to external parties. The information used as a signal for external companies includes fi nancial and nonfi nancial information. For this information, capital market players will conduct an analysis and determine whether the information is either a good signal or a bad signal.

Firm Value
Firm value is the price of company's stock in the capital market that must be paid by investor if he wants to own the company (Ika, Rina and Ilham, 2015). The stock price is an indicator used to show the fi rm value. Companies that have good prospects in the future will tend to attract investors to buy the company's stocks. This resulted in high demand from investors to obtain the stocks. Such a condition will leads to an increase in stock prices. Thus, high stock prices indicate that investors provide high value for the company. This theory is the main foundation in this research. Investors still consider that fi rm value is the main information in decision making. Therefore, various factors that can infl uence investor decisions cause fl uctuations in the fi rm value. Positive and negative signals have an impact on investor decisions.

Dividend Policy
Dividend policy is a decision made by a company whether to hold its profi ts or to distribute part or all of them to shareholders. The company's decision to distribute the dividends is seen by some investors as a positive thing because it describes an improved management performance (Suroto, 2016).
However, too high dividend distribution will reduce the company's ability to invest. Some investors prefer small dividend payments or companies do not have to pay dividends because the investors prefer that the profi ts earned are reinvested in order to get a profi table investment. Theories concerning dividend policy are:

Dividend Irrelevance Theory
According to Professor Merton Miller and Franco Modigliani, dividend policy has no effect on fi rm value and capital costs (Brigham and Joel, 2011: 211). Miller and Modigliani argue that the size of the Dividend Payout Ratio does not determine the fi rm value. The fi rm value is determined by the ability of the company to produce profi t and business risk, not on how the profi t is broken down into dividends and retained earnings. So, it is not relevant to question dividend policy.

Bird In The HandTheory
This theory was put forward by Myron Gordon and John Lintner. According to Gordon and Lintner, dividend policy can have a positive effect on stock market prices. This means that the greater the dividend distributed by the company, the higher the stock market price is the opposite or vice versa. This is because dividend distribution can reduce the uncertainty experienced by investors. Gordon and Lintner assume that if the dividend payout ratio is high, the costs of own capital will be low because investors prefer dividends to capital gains.

Tax Preference Theory
This theory was put forward by Litzenberger and Ramaswamy. Based on this theory, dividend policy has a negative effect on stock market prices. This means that the greater the dividend distributed, the lower the market price of the company's stock. This happens if the personal tax rate is different from dividend income and capital gains. If the tax rate is higher than capital gains, investors prefer to hold the profi ts received to help fund the investment made by the company.

Debt Policy
Debt policy is a policy made by the company to fund its operational activities using debt (Putri, Parengkuan and Johan, 2016). Debt policy is also a policy regarding corporate funding that comes from external sources of the company. The decision to use debt as funding must be considered as well as possible, because debt policy is an important decision for companies to use debt as a source of fi nancing for the company's operations.

Investment Decision
According to Nahdiroh (in Suroto, 2016) investment decisions are actions taken by companies to spend their funds on certain assets in hopes of gaining profi ts in the future. The company's goal can be achieved if the company makes an investment, so that investment decisions become an important factor in the company's fi nancial function. Investment activity is very important for some companies because it involves evaluating the company's performance and operating activities carried out by the company.

Profi tability
Management's performance in managing its business can be illustrated through the profi tability of the company (Cecilia, Syahrul & Bahri, 2015). Profi tability can be used as a reference for investors in buying stocks. Thus, it encourages companies to continue to increase profi tability. It is the main factor for the company because profi tability is related to the results obtained from business activities carried out by the company. The level of effectiveness of company management can also be shown by this ratio through profi ts earned from sales and investment.

The Effect of Dividend Policy on Firm Value
Dividend policy is a policy made by the company regarding how much profi t will be distributed to investors in the form of dividends and how much profi t will be reinvested. Dividend distribution can increase the fi rm value. Based on the birth in the hand theory, investors prefer dividends to capital gains because the risk of dividends is smaller than that of capital gains.
Dividend distribution also provides information to investors regarding company performance. If the company has a stable or increasing dividend distribution ratio, it will give a positive signal to investors so that it will attract investors to invest in the company. The increasing number of investors investing in the company causes the stock price to increase, which indicates that the fi rm value also increases.
However, dividend distribution will reduce the fi rm value because the high dividend distribution will cause dividend profi t tax that must be borne by investors, so that investors prefer to receive capital gains because they can delay the payment of taxes. This is in line with the research conducted by Priscilia, Sientje and Victoria (2015) which states that dividend policy has a signifi cant effect on fi rm value. As described above, a research hypothesis can be formulated as follows: Hypothesis 1: Dividend policy has an eff ect on fi rm value.

The Effect of Debt Policy on Firm Value
Debt policy is a company policy in determining how much a company uses debt as a source of funding. The use of debt can provide benefi ts, namely tax savings. But, the use of debt can also cause costs for company, such as bankruptcy costs, if the company cannot pay off debt. So, the use of debt as a source of funding must be maintained and managed properly and the company must consider making debt policy because it can affect the high and low values of the company. The higher the company in determining the proportion of debt at a certain level, the higher the value of the company.
However, the fi rm value will decrease if the debt level exceeds the proportion of debt set by the company. Besides, the costs incurred from the use of debt are greater than the benefi ts obtained. This is in line with the research conducted by Priscilia, Sientje and Victoria (2015) which states that debt policy has a signifi cant effect on fi rm value.
As described above, a research hypothesis can be formulated as follows: Hypothesis 2: Debt policy has an effect on fi rm value

The Effect of Investment Decision on Firm Value
Investment decisions are actions taken by a company to spend its funds on certain assets in hopes of gaining profi ts in the future. If the company has been able to carry out investment activities, the investor's assessment of the company will be better. This illustrates that the company has managed to provide a positive signal to investors The positive signal is expected to encourage investors to invest in the company. The number of investors who are willing to invest in the company will affect the increase in fi rm value. So investment decisions affect the increasing fi rm value. This is in line with the research conducted by Ni Luh & I Ketut (2014) and Suroto (2016) which states that investment decisions have a signifi cant positive effect on fi rm value. As argued above, a research hypothesis can be formulated as follows:

The Effect of Profi tability on Firm Value
Profi tability is the level of a company's ability to generate profi ts. If a company is able to increase profi ts, it will attract investors to invest in the company. The large number of investors who are willing to invest their capital will increase the demand for the company's stocks. Thus, this will also affect the increase in stock prices. Increasing stock prices affect the increase in fi rm value. This means that the higher the level of profi tability, the higher the value of the company. This is in line with the research conducted by Ayu & Ary (2013) and Ika Sasti, Rina Tjandrakirana and Ilham Ismail (2015) which states that profi tability has a signifi cant positive effect on fi rm value. For that reason, a research hypothesis can be formulated as follow: H 4: Profi tability has an effect on fi rm value

Research Design
This study employs quantitative approach. Quantitative study is a study that aims to examine the relationship between variables through numbers and in accordance with statistical procedures. Based on the objectives of the study, this study includes deductive approach. Deductive study is a study where the process of making decisions is based on the results of data analysis (Jogiyanto, 2007). Sources of data used in this study are secondary data, in which the sources of data are not obtained by researchers directly. The sources of data are in the form of archives or documents. This study uses the company's annual fi nancial statements of consumer goods industry sector companies listed on the Indonesia Stock Exchange in 2013-2017.

Figure 1 FRAMEWORK
The value of a company can be refl ected in the company's stock price. The value of the company in this study is measured by the Tobins'Q formula which is the ratio of market value of company stocks and equity book value which is calculated using the following formula (Madinatul and Fidiana, 2016

Independent Variables (X) Dividend Policy
Dividend policy is a policy made by a company to divide profi ts or hold company profi ts. This study uses dividend policy as an independent variable and is proxied by Dividend Payout Ratio (DPR). The DPR can be calculated as follows (Mamduh & Abdul, 2016: 83):

Debt Policy
Debt policy is a policy to determine how much a company uses debt as a source of funding. This study uses debt policy as an independent variable and is proxied by Debt to Equity Ratio (DER). DER can be calculated using the following formula (Ika, Rina & Ilham, 2015):

Investment Decision
Investment decision is a decision taken by the company regarding investment to obtain results or profi ts in the future. This study uses investment decision as an independent variable and is proxied by Price Earnings Ratio (PER). PER can be measured by the following formula (Ni Luh & I Ketut, 2014):

Profi tability
Profi tability is the level of a company's ability to profi t from its business activities. Profi tability in this study is proxied using Return on Assets (ROA). ROA can be formulated as follows (Mamduh & Abdul, 2016: 81):

Population, Sample, and Sampling Technique
The population in this study is consumer goods sector companies listed on the Indonesia Stock Exchange ( From the selection process, there were 14 companies that did not have complete data regarding the distribution of dividends, including PT. Delta Djakarta Tbk (DLTA) and PT. Indofood CBP Sukses Makmur Tbk (ICBP). These companies decided not to distribute dividends in 2014, so there was no data on dividend distribution. Besides, PT. Kedaung Indah Can Tbk (KICI) and PT. Langgeng Makmur Industry Tbk (LMPI) from 2013 to 2017 did not distribute dividends so that the complete data regarding dividend distribution could not be obtained. Therefore, the number of samples that fi t the criteria was 60 samples (12 companies multiplied by 5 years of the study period).

Descriptive Analysis
This study used descriptive statistical analysis with the aim to provide a description of the data seen from the mean value, standard deviation, variance, maximum, and minimum.
The minimum value of fi rm value was 0.59, owned by PT. Multi Bintang Indonesia Tbk (MLBI) in 2013, which means that the equity market value of MLBI in 2013 was lower than the book value of its equity. The maximum value of 12.96 was owned by Handjaya Mandala Sampoerna Tbk (HMSP) in 2017 which means that the market value of equity of HMSP in 2017 was higher than the book value of its equity. The minimum value of debt policy was 0.19, owned by Handjaya Mandala Sampoerna Tbk (HMSP) in 2015 because companies preferred capital to debt that was used as a source of funding. The maximum value of 3.03 was owned by PT. Multi Bintang Indonesia Tbk in 2014 because the use of debt as a source of funding by companies was higher than the use of capital as a source of funding. The mean value of 0.8212 with a standard deviation of 0.55401 means homogeneous.
The minimum value of investment decisions was 0.22, owned by PT. Multi Bintang Indonesia Tbk (MLBI) in 2013 because the MLBI stock prices in 2013 were lower than earnings per share. The maximum value of 56.24 was owned by Kimia Farma (Persero) Tbk (KAEF) because stock prices were higher than earnings per share. The mean value of 23.1825 with a standard deviation of 11.82644 means homogeneous.

Classical Assumption Test
The classic assumption test was carried out before testing the hypothesis. The classic assumption test aims to fi nd out whether the regression analysis is valid and normally distributed.

Source: Processed Data
The results of the normality test show that the Kolmogorov-Smirnov value is 1.167, with the signifi cance level of the Asymp Sig of 0.131> 0.05. This means that residual data is normally distributed.

Source: Processed Data
The results of multicollinearity test show that each independent variable has a tolerance value of ≥ 0.10, with a Variance Infl ation Factor (VIF) value of ≤ 10, which means that there is no correlation between independent variables, or there is no multicollierity in the regression.  The results of heteroscedasticity test show that the signifi cance level of the independent variables is ≥ 0.05, which means there is no symptom of heteroscedasticity. However, the signifi ce level of profi tability (ROA) is < 0.05, which means that there are symptoms of heteroscedasticity. So, the researchers conduct data transformation using Ln of the variables that have symptoms of heteroscedasticity, namely profi tability. The following are the results of the heteroscedasticity test that uses the glacier test after the data transformation. After the data transformation is done using Ln of the variables that have heteroscedasticity symptoms, namely profi tability variable, the signifi cance level of all independent variables is ≥ 0.05, which means that Heteroscedasticity does not occur in the data.

Multiple Linear Regression Analysis
Multiple linear regression analysis aims to determine whether the independent variables infl uence the dependent variable. Furthermore, if DPR increases by one unit, TOBINSQ will increase by 3.827. Conversely, if DPR decreases by one unit, TOBINSQ will decrease by 3.827. Therefore, if DER increases by one unit, TOBINSQ will increase by 0.740. Conversely, if DER decreases by one unit, TOBINSQ will decrease by 0.740. Furthermore, if PER increases by one unit, TOBINSQ will increase by 0.119. Conversely, if DER decreases by one unit, TOBINSQ will decrease by 0.119. And if Ln_ROA increases by one unit, TOBINSQ will increase by 2,663. Conversely, if DER decreases by one unit, TOBINSQ will decrease by 2.663.

Hypothesis Test
This hypothesis test aims to determine the relationship between independent variables (dividend policy, debt policy, investment decisions and profi tability) and the dependent variable (fi rm value). The results of the F-test in Table 8 show that the value of F is 100,232 with a signifi cance level of 0.000 < 0.05. The conclusion is that H 0 is rejected and H a is accepted which means that the regression model fi ts the data and there is a signifi cant infl uence between the independent variables (dividend policy, policy debt, investment decisions and profi tability) on the dependent variable (fi rm value).

Model
Adjusted R Square 1 0.871

Source: Processed Data
The result of R 2 test in the table above shows that the adjusted R 2 value is 0.871 or 87.1%. This means that dividend policy, debt policy, investment decisions and profi tability affect the fi rm value, or 87.1%, while the remaining 12.9% is infl uenced by other variables.

Source: Processed Data
The t-test in this study compares between t count with t table , and the coeffi cient of this study is signifi cant at α = 0.05. The t table value is searched -by knowing the df value in t-table, where the df value is obtained from n -(k + 1). From this formula, it is known n = 60, k = 4. This means that the df value is 2.3044.
As presented on Table 10, the t-computed value of DPR is 6.094, in which 6.094 > 2.3044, with signifi cance value of 0.000 < 0.05. This means that dividend policy has an eff ect on fi rm value, or Ha is accepted. Furthermore, the t-computed value of DER is 2.478, in which 2.478> 2.3044, with signifi cance value of 0.016 < 0.05. This means that debt policy has an eff ect on fi rm value, or Ha is accepted. Thus, the t-computed value of PER is 8.375, in which 8.375> 2.3044, with signifi cance value of 0.000 < 0.05.This means that investment decisions has an eff ect on fi rm value, or Ha is accepted. And the t-computed value of Ln_ROA is 10.232, in which 10.232 > 2.3044, with signifi cance value of 0.000 < 005. This means that profi tability has an eff ect on company value, or Ha is accepted.

Test Result of Hypothesis 1 : The Effect of Dividend Policy on Firm Value
Dividend policy is a policy taken by a company to determine how much profi t will be distributed to the shareholders in the form of dividends and how much profi t should be reinvested as retained earnings. This variable is proxied by the Dividend Payout Ratio (DPR).
The description above shows that dividend policy has an effect fi rm value. This result is supported by the theory of bird in the hand which states that dividend policy can have a positive effect on stock market prices. Investors prefer dividend receipts than capital gains, because investors assume that the risk of dividends is not as large as that of capital gains. If the company decides to distribute dividends in large amounts, it will attract investors to invest in the company so that it can cause the company's value to increase.
The result of this study indicates that dividend policy has an effect on fi rm value. This is in line with the research conducted by Priscilia, Sientje and Victoria (2015) and Rina and Ilham (2015) which states that dividend policy affects the value of the company.

Test Result of Hypothesis 2: The effect of Debt Policy on Firm Value
Debt policy is a policy made by a company in the use of debt to fund its operations. Debt policy is a corporate funding policy that comes from external sources of the company. This variable is proxied by Debt to Equity Ratio (DER).
The description above shows that debt policy has an effect on fi rm value. This is because the use of debt will generate loan interest that must be borne by the company. Based on signaling theory, the company's ability to save tax will provide a positive signal to investors.
Investors will be interested in investing in the company. The number of investors who are willing to invest will increase the value of the company.
The result of this study shows that debt policy has an effect on fi rm value. This is in line with the research conducted by Priscilia, Sientje and Victoria (2015) and Titin (2013) which states that debt policy affects the value of the company.

Rest Result of Hypothesis 3 : The Effect of Investment Decision on Firm Value
Investment decisions are decisions made by the company to obtain profi ts in the future by spending its funds on certain assets. The company's purpose to develop its business will be achieved if the company makes an investment. So, investment decision is an important factor. This variable is proxied by Price Earnings Ratio (PER).
The description above shows that investment decision has an effect on fi rm value. This is because when a company makes the right investment decisions, it will improve the performance of the company so that it will have a positive impact on the company. Based on signaling theory, with the company's ability to invest, it will provide a positive signal of the company's growth in the future. This also proves that management has succeeded in managing the company. The management success can attract investors to invest in the company. So, this will affect the increase in company value.
The result of this study indicates that investment decision has an effect on fi rm value. This is in line with the research conducted by Ni Luh & I Ketut (2014) and Suroto (2016) which states that investment decision affects the value of the company

Test Result of Hypothesis 4 : The effect of Profi tability on Firm Value
Profi tability is the company's ability to generate profi ts from its operational activities. Profi t is also evidence of the company's success in running its business. This variable is proxied by Return on Assets (ROA).
The description above shows that profi tability has an effect on fi rm value. This is because the company has succeeded in utilizing assets owned effectively and effi ciently so that the profi ts obtained by the company can be maximized. Based on signaling theory, the company's ability to generate profi ts will give a positive signal to investors and investors will give a better assessment to the company. Furthermore, it will encourage investors to invest in the company. The number of investors who are willing to invest will increase the demand for company's stocks and, in turn, this will increase the value of the company. If the company is unable to produce optimal profi ts, the investor's valuation will decrease so that it can affect the decline in stock prices which in turn will result in a decrease in the value of the company.
The result of this study indicates that profi tability has an effect on fi rm value. This is in line with the research conducted by Ayu & Ary (2013) and Ika, Rina and Ilham (2015) which states that profi tability affects the value of the company.

CONCLUSION, IMPLICATION, AND SUG-GESTION
This study aims to determine the effect of dividend policy, debt policy, investment decisions and profi tability on fi rm value in consumer goods industry sector companies listed on the Indonesia Stock Exchange in 2013 -2017. The samples used in this study are 12 companies. The results of multiple linear regression analysis show that all independent variables, consisting of dividend policy, debt policy, investment decisions and profi tability, have an effect fi rm value.
This research is expected to have implications on the consumer goods industry sector companies to improve fi nancial performance. This is because consumer goods sector is an important sector in the manufacturing sector which greatly impacts the excitement of the capital market in Indonesia.
This study has limitations, particularly in heteroscedasticity testing, where the variable of profi tability, which is proxied by ROA, experiences symptoms of heteroscedasticity.
Based on these limitations, there are several suggestions including: First, when Heteroscedasticity occurs, the next researchers are advised to carry out transformations. Second, the next researchers are expected to use samples of companies other than consumer goods industry sector, such as basic industry and chemical industry sectors or various industrial sectors. Third, the next researchers should add other variables that can affect fi rm value, such as fi rm size or capital structure.