The Influence of Firm Size, Firm Age, Leverage, and Profitability on Firm Value (Indo Green Journal)

Summary

• The sample consists of 83 primary consumer goods companies listed on the Indonesia Stock Exchange for 2020-2024.p.1
• Firm size and firm age have no significant effect on firm value, while leverage and profitability have a positive and significant effect.p.1
• The sector price index fell 16.04% in 2020, rose 19.43% in 2021 and fell 5.68% in 2022.p.2
• The index then fell 26.33% in 2023 and rose 4.43% in 2024.p.2

Key insights

1. Firm size, measured by total assets, does not necessarily increase firm value.p.6
2. Higher leverage is associated with higher firm value, interpreted as effective use of debt that builds investor confidence.p.7
3. Higher profitability is associated with higher firm value, as investors treat earning capacity as a key factor.p.7
4. Together, firm size, firm age, leverage and profitability significantly affect firm value.p.1
5. The consumer non-cyclical sector is relatively stable but still moves with economic conditions and purchasing power.p.2
6. The analysis uses multiple linear regression in SPSS version 26.0.p.1