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Determinants of Firm Value: Empirical Evidence from Companies with the Largest Market Capitalization

Year: 2025

Type: article

Abstract: This study aims to examine the effect of profitability, company growth, capital structure, and activity ratios, particularly total asset turnover (TATO), on company value in companies listed on the Indonesia Stock Exchange with the largest market capitalization. Secondary data were obtained from the companies' annual financial reports and analyzed using multiple linear regression. The results of the study indicate that the profitability variable has a positive and significant effect on firm value, while firm growth, total asset turnover, and capital structure do not affect firm value. Additionally, capital structure acts as a moderating variable that influences the relationship between profitability, firm growth, and total asset turnover on firm value.

Source: Indonesian Interdisciplinary Journal of Sharia Economics (IIJSE)

DOI: 10.31538/iijse.v8i3.8502

Authors: Pramusinta Hermawati, Maria Goreti Kentris Indarti

Institution: Universitas Stikubank

Language: English

Topic: Financial Analysis and Corporate Governance

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Decent work and economic growth

Open Access status: diamond

OpenAlex ID: W7102550564

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