Exploration of the Impact of Profitability and Debt Policy on Company Value

In a complex economic environment, understanding the factors influencing corporate value is crucial for the sustainability and growth of companies. Two primary factors that significantly affect corporate value are profitability and debt policy. Profitability reflects a company's ability to generate profit from its operations, while debt policy describes the company's strategy in using borrowed capital to fund operations and investments. This study aims to explore how these two factors jointly influence corporate value in a financial context. The method used is regression analysis, which allows researchers to identify and measure the impact of variables such as profitability, debt policy, and corporate value within a sample of listed companies. The study employed regression analysis to analyze financial data from a number of listed companies, measuring variables of profitability, debt policy, and corporate value. The results indicate a significant relationship between company profitability and corporate value. Higher profitability tends to positively contribute to increased corporate value, indicating that investors and stakeholders value the company's ability to generate consistent profits.