PENGARUH PROFITABILITAS, LEVERAGE, DAN FREE CASH FLOW TERHADAP NILAI PERUSAHAAN: BUKTI EMPIRIS DARI JAKARTA ISLAMIC INDEX 2021–2024

Abstract

Purpose - This study aims to test and analyze the influence of profitability, leverage, and free cash flow on company value at Jakarta Islamic Indeks (JII) with a research period of 2021-2024.

Design/Methodology/Approach - The quantitative approach was used in this study with secondary data. The population determined in this study is companies that are registered as constituents in the Jakarta Islamic Index. The sampling technique used is the purposive sampling method and was obtained by 18 companies with a total of 72 samples. For data processing with multiple linear regression analysis using the SPSS 25 application.

Findings - Profitability has a positive effect on company value in JII, leverage has a positive effect on company value in JII. On the other hand, free cash flow has no effect on company value in JII.

Practical Implications - Companies and shareholders can formulate financial strategies and financial decision-making in sharia companies with information that is fundamental in the future.

Originality/Value - The research provides a more contextual understanding of the fundamental factors that shape the company's value in dynamic economic conditions as well as enriching the literature on the determination of company value in companies with certain financial filtering characteristics.