The Effect of Profitability and Environmental Performance on Firm Value in Consumer Goods Sector Listed on Indonesian Stock Exchange 2017-2019

ABSTRACT : One of the performance of a company can be seen from the firm value. The firm value describesthe prosperity of its shareholders. In order to appear to have a good performance, a company needs to payattention to the factors that can affect its firm value. The purpose of this study is to determine the effect ofprofitability and environmental performance on firm value. This research was conducted in consumer goodssector companies listed on the Indonesia Stock Exchange in 2017-2019. The sample was determined bypurposive sampling method and obtained as many as 22 companies with 52 observational data. The dataanalysis technique used is multiple linear analysis. Based on the research results, it was found that profitability,which is proxied by Return of Assets (ROA) and environmental performance, which is proxied by thecompany’s PROPER rating, has a positive and significant effect on firm value.

Keywords : profitability, environmental performance, and firm value