The Influence Of Company Growth, Liquidity, And Profitability On Firm Value: An Empirical Study On Chemical Subsector Companies Listed On The Indonesia Stock Exchange (2021–2024)

Achmad Luay Dika Kusuma; Sri Trisnaningsih

doi:10.63922/ijebir.v5i05.5848

Achmad Luay Dika Kusuma Universitas Pembangunan Nasional "Veteran" Jawa Timur, Indonesia
Sri Trisnaningsih Universitas Pembangunan Nasional "Veteran" Jawa Timur, Indonesia

DOI: https://doi.org/10.63922/ijebir.v5i05.5848

Keywords: Company Growth, Liquidity, Profitability, Firm Value, Signaling Theory, Chemical Sub-Sector

Abstract

This study aims to examine and analyze the effect of Company Growth (Asset Growth), Liquidity (Current Ratio), and Profitability (Return on Assets) on Firm Value (Price to Book Value) in chemical sub-sector manufacturing companies listed on the Indonesia Stock Exchange during the 2021–2024 period. A quantitative descriptive approach was employed using secondary data from audited annual financial statements. The study population comprised 17 chemical companies, from which 10 sample companies were selected via purposive sampling, with 40 total observations across the 4-year observation period. Data analysis was conducted using multiple linear regression preceded by classic assumption testing. Partially, the results indicate that Company Growth and Profitability have a positive and significant effect on Firm Value, whereas Liquidity has a negative and significant effect on Firm Value. Simultaneously, Company Growth, Liquidity, and Profitability significantly influence Firm Value. These findings highlight the critical importance of working capital efficiency and asset utilization in enhancing investor confidence and corporate market valuation.

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