Determinants of firm value in the food and beverage industry sector: Evidence from companies listed on the Indonesia Stock Exchange

This study aims to determine the determinants of firm value in the food and beverage industry sector listed on the Indonesia Stock Exchange (IDX). This research is of a quantitative nature. The research population and sample consist exclusively of food and beverage companies that are publicly listed on the Indonesia Stock Exchange (BEI). The sample was selected using a purposive selection technique, consisting of 26 enterprises. The Debt to Equity (DER) ratio is used as a proxy for the capital structure of a firm. The measure of company growth is proxied by the variable called Growth. Profitability is represented by the Return On Assets (ROA) ratio. Lastly, the Price to Book (PBV) ratio is used as a proxy for the value of the company. The data analysis method employed is the traditional assumption test and multiple linear regression. The research findings indicate that the partial development of the capital structure has a noteworthy and positive impact on the value of the firm. Additionally, the expansion of the company also has a good and considerable influence on its value. However, the effect of profitability on the company value is shown to be small. All the independent variables, namely capital structure, company development, and profitability, have a simultaneous and significant beneficial impact on the value of the company.