Firm value is aspects that investors can recognize in monetary terms on the firm's ability to utilize assets to be considered in making investment decisions. The better the value of the firm reflects its ability to manage its assets to improve company performance. This study aims to determine the effect of Capital Structure as proxied by Debt to Asset Ratio (DAR), Capital Expenditure, and Independent Commissioner on Firm Value in Manufacturing Companies in the Pharmaceutical Sub-Sector Listed on the Indonesia Stock Exchange (IDX) for the 2016-2021 period. The firm value used in this study was measured using Tobin's Q. The population in this study is the Pharmaceutical Sub-Sector Manufacturing Companies Listed on the Indonesia Stock Exchange (IDX) for the 2016-2021 period. The sampling technique is using purposive sampling. Based on the predetermined sampling criteria, ten companies were obtained, so the observational data obtained amounted to 60 samples. After the outlier, the data samples changed to 48. The data collection method in this research is secondary data. Data were analyzed using descriptive analysis and panel data regression analysis using Eviews version 12. The results showed that capital structure, capital expenditure, and independent commissioner simultaneously affect firm value. Partially, an independent commissioner has a negative effect on firm value, while the capital structure and capital expenditure do not affect firm value.Firm value is aspects that investors can recognize in monetary terms on the firm's ability to utilize assets to be considered in making investment decisions. The better the value of the firm reflects its ability to manage its assets to improve company performance. This study aims to determine the effect of Capital Structure as proxied by Debt to Asset Ratio (DAR), Capital Expenditure, and Independent Commissioner on Firm Value in Manufacturing Companies in the Pharmaceutical Sub-Sector Listed on the Indonesia Stock Exchange (IDX) for the 2016-2021 period. The firm value used in this study was measured using Tobin's Q. The population in this study is the Pharmaceutical Sub-Sector Manufacturing Companies Listed on the Indonesia Stock Exchange (IDX) for the 2016-2021 period. The sampling technique is using purposive sampling. Based on the predetermined sampling criteria, ten companies were obtained, so the observational data obtained amounted to 60 samples. After the outlier, the data samples changed to 48. The data collection method in this research is secondary data. Data were analyzed using descriptive analysis and panel data regression analysis using Eviews version 12. The results showed that capital structure, capital expenditure, and independent commissioner simultaneously affect firm value. Partially, an independent commissioner has a negative effect on firm value, while the capital structure and capital expenditure do not affect firm value.

Keywords

Capital Expenditure, Capital Structure, Firm Value, Independent Commissioner, Tobin’s Q.