Company value analysis: Sales, assets, growth opportunities and leverage in LQ-45 companies (Indonesia Stock Exchange)

Company value plays a significant role in investment decisions, company performance assessment, and risk analysis. In addition, there is uncertainty or inconsistency in the relationship between factors such as sales, assets, and leverage that can affect company value. The study aims to analyze the e...

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Veröffentlicht in:Investment management & financial innovations 2023, Vol.20 (4), p.386-399
Hauptverfasser: Gunarianto, Puspitosarie, Endah, Hadi Susilo, Sugeng
Format: Artikel
Sprache:eng
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Zusammenfassung:Company value plays a significant role in investment decisions, company performance assessment, and risk analysis. In addition, there is uncertainty or inconsistency in the relationship between factors such as sales, assets, and leverage that can affect company value. The study aims to analyze the effect of sales growth, asset growth, and leverage on company value in companies listed on the Indonesia Stock Exchange, especially in the LQ-45 index during the 2021–2022 period. The research method uses a quantitative approach with statistical tools and hypothesis testing. Regression analysis through path analysis models is used to test the proposed hypothesis. The results showed asset growth of 15.42%, debt-equity ratio of 1.7797, and high Price to Book Value (36.2721). Nonetheless, leverage does not act as a mediator in the relationship between asset growth and company value, defying the Modigliani-Miller theory. The finding highlights the complexity of such factors in the context of LQ-45 companies, emphasizing the need for prudent asset management and debt policy to enhance competitiveness. The findings have important implications for financial management and business strategy in a dynamic and competitive environment.
ISSN:1810-4967
1812-9358
DOI:10.21511/imfi.20(4).2023.31