PROFITABILITY AND THE FIRM'S VALUE

The cause of this research is to investigate and prove the impact ROA, ROE, NPM, GPM on firm’s value (Tobin's Q) either partially or simultaneously decide which profitability ratio more dominant in explaining Tobin's Q variance. analysis was carried out companies listed Jakarta Islamic Index (JII) for 2015-2020. sample selected issuers consistently registered with JII during 2015-2020 period, 11 were selected. results show ROA NPM sizeable good-sized effect Q, whilst ROE do not have any effect. positively correlated, negatively correlated. However, all independent variables a significant Q. R-square 0.953648 shows that 95.37% variance can be explained by changes GPM, while other factors outside model remaining 4.43%. Of four tested, variable affecting used as best proxy corporate profitability.