Abstract

Agriculture companies experienced a significant development along with the increasing number of population in Indonesia as well as increasing the needs and ability of people’s purchasing power. To compensate for the increase in demand, the companies need additional capital to expand their company’s operational activities with the challenge of increasingly narrow agriculture land in Indonesia as development in various regions increases. One of the ways to get additional capital is by selling company shares to investors. Some companies have even sold their shares to the public through the Indonesia Stock Exchange to attract investors that increase their capital. However, an investor has to analyze the performance of the company before deciding to invest. The analysis can be done by observing Return on Asset (ROA), Return on Equity (ROE), Debt to Equity Ratio (DER), and Market Capitalization of the company. The sample of this research used all of the population in the agriculture sector listed on the Indonesia Stock Exchange which is 19 companies. As the result shows there is a significant effect between Return on Asset (ROA), Return on Equity (ROE), Debt to Equity Ratio (DER) simultaneously on Market Capitalization. Thus it can be concluded that the way to increase Market Capitalization is company needs to maintain its financial performance especially those related to Return on Asset (ROA), Return on Equity (ROE), Debt to Equity Ratio (DER), where Market Capitalization reflects the level of investor confidence to the company.