Indonesian Journal of Law and Economics Review
Vol 19 No 2 (2024): May
Finance Management

Impact of Financial Decisions on Corporate Value in Indonesia
Dampak Keputusan Keuangan terhadap Nilai Perusahaan di Indonesia


view artikel
  • Mahmudah Ayu Noviana,
  • Nurasik*
Mahmudah Ayu Noviana
Universitas Muhammadiyah Sidoarjo, Indonesia
Nurasik
Universitas Muhammadiyah Sidoarjo, Indonesia *

(*) Corresponding Author
Picture in here are illustration from public domain image or provided by the author, as part of their works
DOI: https://doi.org/10.21070/ijler.v19i2.1109
Published May 31, 2024
Keywords
  • Investment decisions,
  • Funding decisions,
  • Company size,
  • Financial performance,
  • Firm value
How to Cite
Noviana, M. A., & Nurasik. (2024). Impact of Financial Decisions on Corporate Value in Indonesia. Indonesian Journal of Law and Economics Review, 19(2), DOI 10.21070/ijler.v19i2.1109. https://doi.org/10.21070/ijler.v19i2.1109

Copyright (c) 2024 Mahmudah Ayu Noviana, Nurasik

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

Crossref
Scopus
Google Scholar
Europe PMC

Abstract

This study investigates the impact of investment decisions, funding decisions, company size, and financial performance on firm value in manufacturing companies listed on the Indonesia Stock Exchange (IDX) from 2016 to 2019. Utilizing quantitative methods and secondary data from annual financial reports of 26 companies, the research employs statistical analysis techniques to a purposive sample of 10 firms. Results indicate that while investment and funding decisions did not significantly affect firm value, company size demonstrated a significant influence, whereas financial performance did not exhibit a significant effect. These findings offer valuable insights for managers and investors aiming to enhance company performance and value in the Indonesian market.

Highlight:

  1. Investment and funding: Crucial for company's financial health and prospects.
  2. Company size: Influences firm value, indicating scalability's importance in perception.
  3. Implications: Insights for optimizing performance and value in Indonesian market.

Keywoard:  Investment decisions, Funding decisions, Company size, Financial performance, Firm value

view artikel

Downloads

Download data is not yet available.

References

  1. A. Fatima, "Pengaruh Profitabilitas, Likuiditas Dan Leverage Terhadap Nilai Perusahaan Dengan Kualitas Laba Sebagai Variabel Moderasi (Studi Kasus Pada Perusahaan Perbankan Yang Listed Di Bursa Efek Indonesia Periode 2013-2015)," Skripsi, 2017.
  2. B. Yasar, T. Martin, and T. Kiessling, "An Empirical Test Of Signalling Theory," Management Research Review, vol. 00, pp. 1-19, 2020, doi: 10.1108/MRR-08-2019-0338.
  3. B. Nyagadza, E. M. Kadembo, and A. Makasi, "When Corporate Brands Tell Stories: A Signalling Theory Perspective," Cogent Psychology, vol. 7, no. 1, p. 1897063, 2021, doi: 10.1080/23311908.2021.1897063.
  4. E. Brigham and J. E. Houston, "Dasar-Dasar Manajemen Keuangan Terjemahan. Edisi 10.," Jakarta: Selemba Empat, 2018.
  5. F. W. Lusiana, "Analisis Pengaruh Rasio Likuiditas, Rasio Solvabilitas, Rasio Aktivitas, Dan Rasio Profitabilitas Terhadap Price Earning Ratio Pada Perusahaan Manufaktur Yang Terdaftar Di Bursa Efek Indonesia," 2010.
  6. Kasmir, "Analisis Laporan Keuangan," Journal of Business and Banking, vol. 6, no. 2, 2019, doi: 10.14414/Jbb.V6i2.1299.
  7. Kasmir, Analisis Laporan Keuangan. Jakarta: PT Raja Grafindo Persada, 2015.
  8. L. Susilawaty, E. Purwanto, and S. Febrina, "Faktor–Faktor Yang Mempengaruhi Pengambilan Keputusan Investasi Di Pasar Modal Indonesia," National Conference on Creative Industries, pp. 5–6, 2018, doi: 10.30813/Ncci.V0i0.1272.
  9. M. Ghozali, "Aplikasi Analisis Multivariate Dengan Program IBM SPSS 19," Semarang: Badan Penerbit Universitas Diponegoro, 2011.
  10. N. P. I. Kartika Dewi and N. Abundanti, “Pengaruh Leverage Dan Ukuran Perusahaan Terhadap Nilai Perusahaan Dengan Profitabilitas Sebagai Variabel Mediasi,” E-Jurnal Manajemen Universitas Udayana, vol. 8, no. 5, p. 3028, 2019, doi: 10.24843/Ejmunud.2019.V08.I05.P16.
  11. P. Pbv et al., “Pengaruh Pbv, Eps, Dan Profitabilitas Terhadap Harga Saham Dan Keputusan Investasi Pada Perusahaan Perbankan Konvensional Yang Terdaftar Di Bursa Efek Indonesia Periode 2016-2018,” 2018.
  12. Rusdania, “Faktor – Faktor Yang Mempengaruhi Price Earning Ratio Pada Perusahaan Subsektor Perdagangan Ritel Yang Terdaftar Di Bursa Efek Indonesia Periode 2016 – 2020,” 2021.
  13. R. Nofrita, “Pengaruh Profitabilitas Terhadap Nilai Perusahaan Dengan Kebijakan Deviden Sebagai Variabel Intervening (Studi Empiris Pada Perusahaan Manufaktur Yang Terdaftar Di Bursa Efek Indonesia),” Republika, 2020.
  14. S. Yulyanti et al., “Pengaruh Intensitas Asset Tetap, Intensitas Modal, Pertumbuhan Penjualan Dan Leverage Terhadap Tax Avoidance,” Jumbiwira Jurnal Manajemen Bisnis Kewirausahaan, vol. 1, no. 3, pp. 24–32, 2022, doi: 10.56910/Jumbiwira.V1i3.256.
  15. Sugiyono, “Metode Penelitian Kuantitatif Kualitatif R&B,” Bandung: Alfabeta, 2015.
  16. W. Sujarweni, "Metodologi Penelitian (Bisnis & Ekonomi)," Yogyakarta: Pustaka Baru Press, 2015.
  17. Sugiyono, "Metode Penelitian Pendidikan Pendekatan Kuantitatif, Kualitatif Dan R&D," Bandung: Alfabeta, 2014.
  18. Sugiyono, "Metode Penelitian Kuantitatif, Kualitatif, Dan R&D, Cetakan 19," Bandung: Alfabeta Cv., 2013.
  19. S. Maryam, A. R. Mus, and A. Priliyadi, "Pengaruh Ukuran Perusahaan, Pertumbuhan Perusahaan, Likuiditas, Profitabilitas Dan Kebijakan Dividen Terhadap Nilai Perusahaan," Central Economics Student Journal, vol. 3, no. 1, pp. 90–109, 2020.
  20. W. J. Erwin and T. Widyastuti, "Pengaruh Struktur Modal, Likuiditas, Arus Kas Bebas Dan Ukuran Perusahaan Terhadap Nilai Perusahaan Dengan Profitabilitas Sebagai Variabel Intervening," Journal of Ekobisman, vol. 6, no. 1, pp. 17–34, 2021.