Study of Financial Management Policy on Company Value (Study of the Textile and Garment Industry on the Indonesia Stock Exchange Period 2013-2017)


The purpose of this study was to determine the effect of financial management policies which include investment policy, debt policy, profit policy) on the value of the company in the textile and garment industry companies that are listed on the Indonesia Stock Exchange (IDX) for the period 2013-2017. The research method used was purposive sampling and obtained sample of 6 companies from population of 17 textile and garment industry companies that were listed on the Indonesia Stock Exchange (IDX) for the period 2013-2017. The analysis technique used is multiple linear regression analysis. Based on the results of the study show that investment policies partially have no significant effect on firm value, debt policy partially has a significant effect on firm value, earnings policy has a significant effect on firm value, then based on the coefficient of determination (r2) of 66.9% explained by independent variables namely: investment policy, debt policy, profit policy. While the remaining 33.1% is explained by other variables not examined in this study, for example, macroeconomic conditions, capital structure, company growth.

Keywords: Investment policy; debt policy; profit policy; firm value

[1] Fahmi, Irham. (2013). Introduction to Financial Management Theories and Questions. Bandung: Alfabeta.

[2] Faridah, Nur dan Kurnia, (2016). Effect of Investment Decisions, Funding, Dividend Policy, Interest Rates on Company Value, Vol. 5 No. 2: 1–15.

[3] Halim, Abdul. (2015). Business Financial Management ”Concepts and Applications”. Jakarta: Mitra Wacana Media.

[4] Kamaludin. (2011). Financial Management ”Basic Concepts and Their Application”. Bandung: CV. Mandar Maju.

[5] Kasmir. (2013). Financial Statement Analysis. Jakarta: PT. Raja Grafindo Persada.

[6] Kusuma, Any, Widya, (2015). Analysis of the Effect of Profitability, Investment Decisions and Debt Policy on Corporate Value (In Property, Real Estate & Building Construction Companies, which are Listed on the Indonesia Stock Exchange Period 2010–2015). Paper, Trunojoyo Madura University Postgraduate Program.

[7] Margaretha, Farah. (2014). Fundamentals of Financial Management. Jakarta: PT. Dian Rakyat.

[8] Nainggolan, Subaraman, Desmon D.A. dan agung Listiadi, (2014). The Effect of Debt Against Firm Value With Dividend Policy As Moderation Variable, Vol. 2 No. 3: 868–879.

[9] Najmudin. (2011). Financial Management and Actualization of Modern Shariah. Yogyakarta: C.V Andi Offset.

[10] Pertiwi, Putri Juwita, Parengkuan Tommy dan Johan R. Tumiwa. (2016). Effect of Debt Policy, Investment Decisions and Profitability Against the Value of Food Beverages Companies listed on the Indonesia Stock Exchange, Vol. 4 No. 1: 1369–1380.

[11] Pratama, I Gusti, B.A dan I Gusti Bagus Wiksuana, (2016). Effect of Company Size and Leverage on Firm Value with Profitability as a Mediating Variable„ Vol. 2 No. 2: 1338–1367.

[12] Purwohandoko, (2017). The Influence on Firms’s Size, Growth and Profitability on Firm Value with Capital Structure as the Mediator: A Study on the Agricultural Firms Listed in the Indonesian Stock Exchange. Internasional Journal of Economics and Finance, Vol. 9 No. 8: 103–110.

[13] Ratnasari, Linda dan Budiyanto, (2016). Effect of Leverage, Liquidity, Company Size on Profitability of Automotive Companies on the Indonesia Stock Exchange (IDX), Vol. 5 No. 6: 1–15.

[14] Rizqia, Dwita Ayu, Siti Aisjah dan Sumiati, (2013). Effect of Managerial Ownership, Financial Leverage, Profitability, Rirm Size, and Investment Opportunity on Dividend Policy and Firm Value. Research Journal Finance and Accounting, Vol. 4 No. 11: 120–130.

[15] Romlah, Dwi, 2016. Effects of Return On Assets (ROA), Return On Equity (ROE), Company Age (AGE) and Company Size (SIZE) Against Returns After Initial Public Offering (IPO) on Manufacturing Companies Registered in Indonesia Stock Exchange (IDX) Period 2010–2014. Paper, Program Pascasarjana: Universitas Trunojoyo Madura.

[16] Rumondor, Regina, Maryam Mangantar dan Jacky S.B. Sumarauw, 2015. The Effect of Capital Structure, Company Size and Company Risk on Company Value in the Plastic and Packaging Sub Sector at IDX, Vol. 3 No. 3: 159–169.

[17] Sabrin, et al., (2016). The Effect of Profitability on Firm Value in Manufacturing Company at Indonesia Stock Exchange. The Internasional Journal of Engineering and Science (IJES), Vol. 5: 81–89.

[18] Santoso, Singgih. (2015). Mastering Parametric Statistics.. Jakarta: PT. Gramedia.

[19] Suffah, Roviqotus dan Akhmad Riduwan, (2016). Effect of Profitability, Leverage, Company Size and Dividend Policy on Firm Value, Vol. 5 No. 2: 2–17.

[20] Sugiyono. (2007). Statistics for Research. Bandung, CV. Alfabeta.

[21] Sugiyono. (2015). Quantitative, Qualitative, and R&D Research Methods.. Bandung: CV. Alfabeta.

[22] Ulum, Achmad, Saiful, (2015). The Influence of Profitability and Capital Structure on Firm Value (Study on Manufacturing Industries Listed at Indonesia Stock Exchange for Periode 2008-2012), Vol. 14 No. 1:79–97.

[23] Wahyudi, Henri, Dwi, Chuzaimah dan Dani Sugiarti, (2016). Influence of Company Size, Profitability, Dividend Policy and Investment Decisions on Company Value (Study of Use of the Lq-45 Index 2010–2014 Period), Vol.1 No. 2: 156–164.

[24] Warouw, Christina, Sintje Nangoy dan Ivonne S. Saerang, (2016). The Effect of Working Capital Turnover and Profitability on Company Value in Pharmaceutical Companies on the Indonesia Stock Exchange, Vol. 16 No. 02: 366–375.