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

Zamroni

Faculty of Economics and Business, Management Study Program, Universitas Muhammadiyah Purwokerto, Indonesia.

Naelati Tubastuvi *

Faculty of Economics and Business, Management Study Program, Universitas Muhammadiyah Purwokerto, Indonesia.

Ika Yustina Rahmawati

Faculty of Economics and Business, Management Study Program, Universitas Muhammadiyah Purwokerto, Indonesia.

Irawan Randikaparsa

Faculty of Economics and Business, Management Study Program, Universitas Muhammadiyah Purwokerto, Indonesia.

*Author to whom correspondence should be addressed.


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.

Keywords: Dividend policy, investment decisions, funding decisions, firm size, managerial ownership, firm value


How to Cite

Zamroni, Naelati Tubastuvi, Ika Yustina Rahmawati, and Irawan Randikaparsa. 2024. “The Impact of Firm Characteristics on Firm Value: Evidence from Indonesia Stock Exchange”. Asian Journal of Economics, Business and Accounting 24 (8):336-48. https://doi.org/10.9734/ajeba/2024/v24i81460.

Downloads

Download data is not yet available.