Beyond Numbers: Beyond Numbers: Exploring Factors Influencing Company Value In Indonesian Consumer Goods (2018-2022)

Authors

  • Darmawel Ahmad Master of Accounting Program, Widyatama University
  • Nuryaman Master of Accounting Program, Widyatama University

DOI:

10.33395/owner.v8i3.2197

Keywords:

Debt to Equity Ratio, Logaritma Natural Asset, Price to Book Value, Stock Return on Equity, Total Aset Turn Over

Abstract

This study analyzed Indonesian consumer goods' business value determinants (2018-2022) using numerical methods, focusing on the impact of key variables like debt-to-equity ratio, total asset turnover, logarithm of assets, and return on equity. The research investigated the influence of these factors on companies listed on the Indonesian Stock Exchange, revealing significant effects of debt-to-equity ratio and total asset turnover on return on equity and subsequently on price-to-book value. The logarithm of assets directly affected return on equity but had no impact on price-to-book value. Regression analysis, measured by R-Square and Q-Square values, demonstrated the variables' impact on cost-to-book value and return on equity. The study confirmed that financial leverage and asset utilization significantly affect enterprise value, highlighting the importance of effective financial management in optimizing investment returns in Indonesia's consumer goods sector.

Downloads

Download data is not yet available.

        Plum-X Analityc

References

Affandi, F., Sunarko, B., & Yunanto, A. (2019). The Impact of Cash Ratio, Debt To Equity Ratio, Receivables Turnover, Net Profit Margin, Return On Equity, and Institutional Ownership To Dividend Payout Ratio. Journal of Research in Management, 1(4), 1–11. https://doi.org/10.32424/jorim.v1i4.53

Angestu, A., & Hanum, Y. (2023). Kebijakan Dividen Sub Sektor Barang Konsumsi pada Era Sebelum dan Sesudah Terdampak Covid-19 Perusahaan Manufaktur di BEI dengan Pendekatan ANFIS. Jurnal Ilmiah KOMPUTASI, 22(1).

Aouadi, A., & Marsat, S. (2018). Do ESG Controversies Matter for Firm Value? Evidence from International Data. Journal of Business Ethics, 151(4), 1027–1047. https://doi.org/10.1007/s10551-016-3213-8

Arsyad, M., Haeruddin, S. H., Muslim, M., & Pelu, M. F. A. R. (2021). The effect of activity ratios, liquidity, and profitability on the dividend payout ratio. Indonesia Accounting Journal, 3(1), 36. https://doi.org/10.32400/iaj.30119

Carnahan, S., Agarwal, R., & Campbell, B. (2010). The Effect of Firm Compensation Structures on the Mobility and Entrepreneurship of Extreme Performers. Business, 920(October), 1–43. https://doi.org/10.1002/smj

Chairunesia, W. (2021). Financial Ratios As a Prediction Tool for Financial Distress: Study on Manufacturing Companies Listed in Indonesia Stock Exchange for the 2018-2019 period. International Journal of Management Studies and Social Science Research, 3(4), 189–198. https://ijmsssr.org/paper/IJMSSSR00475.pdf

Chu, J., Jin, Y., & Zhang, H. (2022). Stock Analysis Strategy for US’s Stock Market Based on Risk, Profitability, and Market Value Insights. Proceedings of the 2021 3rd International Conference on Economic Management and Cultural Industry (ICEMCI 2021), 203(Icemci), 1943–1947. https://doi.org/10.2991/assehr.k.211209.317

Cordiaz, E. F., . E., & Situmeang, C. (2021). The Effect of Profitability, Liquidity, and Capital Structure on Firm Value with Dividend Policy as a Moderating Variable in the Company Mining Listed on the Indonesia Stock Exchange. International Journal of Research and Review, 8(12), 328–337. https://doi.org/10.52403/ijrr.20211241

Ehiedu, V. C. (2014). The Impact of Liquidity on Profitability of Some Selected Companies: The Financial Statement Analysis (FSA) Approach. Research Journal of Finance and Accounting Www.Iiste.Org ISSN, 5(5), 81–90. www.iiste.org

Elia, V., Gnoni, M. G., & Tornese, F. (2017). Measuring circular economy strategies through index methods: A critical analysis. Journal of Cleaner Production, 142, 2741–2751. https://doi.org/10.1016/j.jclepro.2016.10.196

Fangohoi, L., Yuniarti, S., & Respati, H. (2023). Analysis of the Effect of Return on Assets (ROA) and Current Ratio (CR), on Stock Prices with Earnings Per Share (EPS) as a Moderation Variable (On the Mining Sector on the IDX 2020- 2022). Journal of Economics, Finance and Management Studies, 06(09), 4285–4298. https://doi.org/10.47191/jefms/v6-i9-16

Fatima, N., Shaik, A. R., & Tripathy, S. (2023). Firm Value and Profitability of Saudi Arabian Companies Listed on Tadawul: Moderating Role of Capital Structure. International Journal of Sustainable Development and Planning, 18(5), 1515–1521. https://doi.org/10.18280/ijsdp.180522

Fonseca, S., Guedes, M. J., & da Conceição Gonçalves, V. (2022). Profitability and size of newly established firms. International Entrepreneurship and Management Journal, 18(2), 957–974. https://doi.org/10.1007/s11365-020-00730-6

Hair et al. (2017). A primer on partial least squares structural equation modeling (PLS-SEM). In International Journal of Research & Method in Education (Vol. 38, Issue 2). https://doi.org/10.1080/1743727x.2015.1005806

Hair, J. F., Risher, J. J., Sarstedt, M., & Ringle, C. M. (2019). When to use and how to report the results of PLS-SEM. European Business Review, 31(1), 2–24. https://doi.org/10.1108/EBR-11-2018-0203

Laveda, M., & Khoirudin, R. (2020). Analisis nilai perusahaan sektor barang konsumsi periode 2015-2019. Inovasi: Jurnal Ekonomi Manajemen Dan Keuangan, 16(2).

Le, T. D. Q., & Nguyen, D. T. (2020). Intellectual capital and bank profitability: New evidence from Vietnam. Cogent Business and Management, 7(1). https://doi.org/10.1080/23311975.2020.1859666

Makori, D. M., & Jagongo, A. (2013). Working Capital Management and Firm Profitability?: Empirical Evidence from Manufacturing and Construction Firms Listed on Nairobi Securities Exchange , Kenya. International Journal of Accounting and Taxation, 1(1), 1–14.

Molodchik, M. A., Shakina, E. A., & Barajas, A. (2014). Metrics for the elements of intellectual capital in an economy driven by knowledge. Journal of Intellectual Capital, 15(2), 206–226. https://doi.org/10.1108/JIC-08-2013-0091

Purba, M. N., Sinurat, E. K. B., Djailani, A., & Farera, W. (2020). The Effect of Current Ratio, Return on Assets, Total Asset Turnover and Sales Growth on Capital Structure in Manufacturing Company. International Journal of Social Science and Business, 4(3), 489. https://doi.org/10.23887/ijssb.v4i3.27958

Purnasari, N., Simanjuntak, A., Sultana, A., Manik, L. M., & Halawa, S. R. (2020). Pengaruh Ukuran Perusahaan, GPM, Risiko Bisnis terhadap Struktur Modal pada Perusahaan Manufaktur di BEI. Owner (Riset Dan Jurnal Akuntansi), 4(2), 640. https://doi.org/10.33395/owner.v4i2.309

Putri, M. D. N., & Kisman, Z. (2022). Analysis Of Factors Affecting Firm Value (Empirical Studies On Food And Beverage Sub-Sector Industry Companies Listed On Idx In 2014 – 2020). Islamic Banking?: Jurnal Pemikiran Dan Pengembangan Perbankan Syariah, 8(1), 197–216. https://doi.org/10.36908/isbank.v8i1.571

Saleh Alarussi, A., & Mohammed Alhaderi, S. (2018). Factors affecting profitability in malaysia. Journal of Economic Studies.

Tahu, G. P., & Susilo, D. D. B. (2017). Effect of Liquidity, Leverage and profitability to The Firm Value (Dividend Policy as Moderating Variable) in Manufacturing Company of Indonesia Stock Exchange. Research Journal of Finance and Accounting , 8(18), 89–98. www.idx.co.id

Tantorio, A., Purba, P. ., Fransisca, C., Valencia, V., & Herawati, N. . (2023). The Influence of Liquidity DER, ROA, and TATO on Stock Price in Wholesale Sector and Small Trade Companies on IDX 2017-2021. Encrichment: Journal of Management, 13(2), 1164–1174.

Wibowo, I. A., & Surjandari, D. A. (2023). Capital Structure, Company Size and Profitability Influence on Company Value with Managerial Ownership as Moderation Variables. International Journal of Social Service and Research, 3(1), 1–14. https://doi.org/10.46799/ijssr.v3i1.212

Downloads

Published

2024-06-30

How to Cite

Ahmad, D., & Nuryaman, N. (2024). Beyond Numbers: Beyond Numbers: Exploring Factors Influencing Company Value In Indonesian Consumer Goods (2018-2022). Owner : Riset Dan Jurnal Akuntansi, 8(3), 2432-2440. https://doi.org/10.33395/owner.v8i3.2197