International Journal of Applied Finance and Business Studies
Vol. 11 No. 4 (2024): March: Applied Finance and Business Studies

The company's value is influenced by profitability and liquidity

Dita Yuliyanti (Universitas Primagraha Serang, Indonesia)
Masriyah Masriyah (Universitas Primagraha Serang, Indonesia)
Mulyanah Mulyanah (Universitas Primagraha Serang, Indonesia)
Didit Haryadi (Universitas Primagraha Serang, Indonesia)
Wahyudi Wahyudi (Universitas Primagraha Serang, Indonesia)



Article Info

Publish Date
03 Feb 2024

Abstract

This study investigates the interaction between capital structure, net profit margin, and company value in the manufacturing sector in Indonesia. The goal is to gain insight into how these factors interact and affect the overall value of a company in a particular region and industry. This analysis uses quantitative methods based on financial data and relevant metrics for a sample of food and beverage sector companies operating in Indonesia from 2019 – 2023, with sample data of 15 companies having been used. This study examines the relationship between profitability, liquidity, and company value through statistical analysis and linear regression modeling techniques with SPSS version 26. The results showed that profitability had a significant effect on the value of the company. Liquidity does not affect the value of the company. Profitability and liquidity simultaneously affect the value of a company. The findings contribute to the existing literature on company valuations by providing empirical evidence specific to the food and beverage sector listed on the Indonesia Stock Exchange. The research has implications for policymakers, investors, and managers, as it offers valuable insights into the factors that drive corporate value in the industry, helping stakeholders make decisions and strategies to improve performance and competitiveness. Provide benefits in the context of financial management

Copyrights © 2024






Journal Info

Abbrev

ijafibs

Publisher

Subject

Decision Sciences, Operations Research & Management Economics, Econometrics & Finance

Description

International Journal of Applied Finance and Business Studies is published with both online and print versions devoted to provide the publication of research finding in finance and business research studies. Objectives The main goal of ijafibs is to present outstanding, high quality research ...