Determinants of Firm Value in the Indonesian Property and Real Estate Sector: Evidence from Panel Data Analysis (2013-2024)

Taufik Hidayat; Adibah Yahya; Eka Avianti Ayuningtyas; Oom Tikaromah

doi:10.33395/owner.v9i3.2774

Authors

Taufik Hidayat Universitas Pelita Bangsa
Adibah Yahya Universitas Pelita Bangsa
Eka Avianti Ayuningtyas Universitas IPWIJA
Oom Tikaromah Universitas Pelita Bangsa

DOI:

10.33395/owner.v9i3.2774

Keywords:

Audit committee, debt to equity ratio, , return on equity, firm size, firm value

Abstract

This study analyzes how Good Corporate Governance (GCG), specifically through the audit committee, capital structure (DER), profitability (ROE), and firm size, influences firm value within Indonesia's property and real estate sector. By examining secondary data from companies' annual reports between 2013 and 2024 using panel data regression, and sample selection using purposive sampling. The findings indicate that the audit committee does not significantly influence firm value, suggesting its role is more supervisory than directly strategic in value creation. Conversely, capital structure (DER) shows a positive effect on firm value, implying that efficient debt utilization can enhance shareholder returns. Profitability (ROE) also positively impacts firm value, confirming that strong financial performance and operational efficiency boost investor confidence. Interestingly, firm size negatively affects firm value, possibly due to operational complexities and inefficiencies often associated with larger corporations. These insights offer valuable guidance for investors and management in understanding the determinants of firm value in this sector.

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Author Biography

Adibah Yahya, Universitas Pelita Bangsa

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