The Company's Policy, Firm Performance, and Firm Value: An Empirical Research on Indonesia Stock Exchange
Bambang Sudiyatno, Elen Puspitasari, Andi Kartika

Abstract
This study examined the role of company performance in determining the direction of the relationship between the company's policies to value the company. The goal is to identify where the role of company performance as a variable that is affected by the company's policies and influence the value of the company. Tests carried out in stages to test the effect of the company's policies on corporate performance and corporate value, and examine the effect of company performance on firm value. The study was conducted in Indonesia Stock Exchange (IDX) with a sample of manufacturing firms listed on the IDX in 2008 to 2010 with the purpose of sampling method. The results showed that financial leverage has a significant negative effect on the significance level of less than 1% of the company performance, and a significant positive effect on the level of significance of 5% of the value of the company. Incentive managers have a positive effect, but not significant to company performance, and a significant positive effect on the significance level of less than 1% of the value of the company. Capital expenditure has a significant positive effect on the level of significance is less than 1% of the company performance, and a negative effect, but no significant effect on firm value. The company's performance has positive and significant at the significance level of less than 1% of the value of the company.

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