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August 10, 2024Asian Journal of Economics Business and Accounting1 citationsOpen Access

The Impact of Firm Characteristics on Firm Value: Evidence from Indonesia Stock Exchange

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ZZZamroni ZamroniNTNaelati TubastuviIRIka Yustina Rahmawati

Key Points

  • Firm value increased significantly due to investment and funding decisions, while dividend policy had no impact.
  • Investment decisions and funding decisions positively influenced firm value with a significant effect observed.
  • Analysis utilized descriptive statistics and hypothesis tests with IBM SPSS statistical analysis tool version 25 for evaluation of 120 company data points from 2019-2022 period in Indonesia stock market sector patterns and trends.

Abstract

Objective: Knowing the influence between dividend policy, investment decisions, funding decisions, firm size, and managerial ownership on firm value. Study Design: The population in this study are companies in the primary consumer goods and non-primary consumer goods sectors listed on the Indonesia Stock Exchange (IDX) for the 2019-2022 period. The data from this study comes from the company's annual report and the company's official website. Place and Duration of Study: Primary consumer goods and non-primary consumer goods sector companies listed on the Indonesia Stock Exchange (IDX) for the 2019-2022 period. Methodology: The method used in data collection is using purposive sampling technique. For the sample used in this study, namely 30 companies for 4 years totaling 120 company data. This study uses descriptive statistics, classical assumption tests, coefficient of determination tests and hypothesis tests which are tested using the IBM SPSS statistical analysis tool version 25. Results: The results showed that the investment decision variable and funding decisions had a significant positive effect on firm value. While the variables of dividend policy, firm size, managerial ownership have no significant effect on firm value. Conclusion: The contribution of this study helps reveal that investment decisions and funding decisions play a role in determining the value of companies in the primary consumer goods and non-primary consumer goods sectors.

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Cite This Study

Zamroni et al. (2024) studied this question.

synapsesocial.com/papers/68e5cc6bb6db643587562aa7https://doi.org/10.9734/ajeba/2024/v24i81460
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