Financial Signals and Firm Value in Indonesia’s SME Acceleration Board: Evidence from Sales Growth, Profitability, and Firm Size (JPI Jurnal Pustaka Indonesia)

Summary

• The study analyzed a balanced panel of 13 SME issuers listed on the Indonesia Stock Exchange Acceleration Board across 39 firm-year observations from 2022 to 2024.p.1
• Sample issuers recorded a mean Tobin’s Q of 2.201, with individual values ranging from 0.490 to 14.308.p.7
• Average sales growth across the sampled observations was 3.120, with a maximum value of 74.030.p.7
• Firm size, calculated as the natural logarithm of total assets, recorded a mean of 25.175 and a standard deviation of 0.657.p.7
• The estimated pooled ordinary least squares regression model yielded an R² of .034 and an adjusted R² of −.049.p.8

Key insights

1. Sales growth exhibited a negative but statistically non-detectable association with firm value, with a coefficient of −0.0219 and a p value of .548.p.8
2. Return on assets showed a negative but statistically non-detectable relationship with firm value, producing a coefficient of −4.4425 and a p value of .566.p.8
3. Firm size demonstrated a positive but statistically non-detectable association with firm value, generating a coefficient of 0.3580 and a p value of .629.p.8
4. Model selection tests favored a pooled ordinary least squares specification over fixed or random effects models.p.7
5. The three evaluated financial predictors were not jointly statistically significant, with a reported F statistic p value of .749.p.8
6. None of the three hypotheses proposing positive associations between the financial signals and firm value were supported.p.8
7. Conventional accounting-based indicators may have limited standalone explanatory power for firm value in information-constrained SME equity markets.p.12