The Influence of Financial Performance and Macroeconomic Factors on Price to Book Value in Property and Real estate Companies in Indonesia

Authors

  • Abet Alpha Pardede Fakultas Ekonomi dan Bisnis Universitas Batam
  • R.A. Widyanti Diah Lestari Fakultas Ekonomi dan Bisnis Universitas Batam
  • Nolla Puspita Dewi Fakultas Ekonomi dan Bisnis Universitas Batam
  • Sumantri Fakultas Ekonomi dan Bisnis Universitas Batam

Keywords:

Debt to Equity Ratio, Current Ratio, Return on Equity, Price to Book Value, Inflation

Abstract

The objective of this research is to assess the contribution of several financial indicators on market valuation of the firm. The company's financial setup is represented as quantified by the proportion of debt to equity, through the Equity Ratio (DER). A company's liquidity is reflected through the Current Ratio (CR), while profitability is indicated as Return on Equity ((ROE). The effects of these financial indicators on firm valuation are analyzed using Price to Book Value (PBV) as an indicator of market valuation. Additionally, this analysis looks into the importance of inflation functioning as an interaction variable that may affect the interactions among those financial metrics. The analysis draws upon data from 52 companies operating spanning the property and real estate market, whose shares were actively traded on the national trading exchange of Indonesia during the 2019–2023 period. The analytical framework employs panel data regression utilizing the Random Effect Model (REM), supported by interaction testing to evaluate moderation effects. The findings reveal that DER exerts a positive and statistically substantial effect on Price to Book Value, particularly for firms categorized as undervalued. In contrast, CR exhibits a negative effect, while ROE does not show a significant correlation with the company’s value. Moreover, inflation serving as a moderating factor in the relationship among financial ratios and the value of undervalued firms.

References

1. Anshary, M. H. (2022). Analisis Pengaruh Profitabilitas, Likuiditas, Dan Solvabilitas Terhadap Harga Saham Dengan Inflasi Sebagai Variabel Moderasi Pada Perusahaan Sektor Pertambangan Yang Terdaftar Di Bursa Efek Indonesia Tahun 2016 - 2019. Skripsi Universitas Islam Indonesia Yogyakarta, 1–23.

2. Fisher, I. (1930). The theory of interest: As determined by impatience to spend income and opportunity to invest it. The Life Cyclists, 179–185. https://doi.org/10.1057/9780230349445_20

3. Ghule, D., & Vora, K. (2021). Financial performance and capital structure in Indian real estate industry (2011–2020). 08(1), 1–42. https://doi.org/https://doi.org/10.xxxx/xxxxx

4. Gujarati, D. N., & Porter, D. C. (2020). Basic Econometrics (6th ed.) (6th ed.). McGraw-Hill Education.

5. Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs, and ownership structure. Journal of Financial Economics, 4, 305–360. https://doi.org/https://doi.org/10.1016/0304-405X(76)90026-X

6. Listyawati, I., & Kristiana, I. (2023). Pengaruh Return on Asset dan Debt to Equity Ratio Terhadap Nilai Perusahaan. MDP Student Conference, 2(2), 138–144. https://doi.org/https://jurnal.unimus.ac.id/index.php/MAX

7. Myers, S. C., & Majluf, N. S. (1983). Corporate Financing and Investment Decisions. Journal of Financial Economics, 13(2)(December), 187–221. https://doi.org/10.1016/0304-405X(84)90023-0

8. Myers, S. C. (1984). The capital structure puzzle. The Journal of Finance. The Journal of Finance, 39(3), 574–592. https://doi.org/https://doi.org/10.1111/j.1540-6261.1984.tb03646.x

9. Nafisah, N. I., Halim, A., & Sari, A. R. (2020). Pengaruh Return on Assets (Roa), Debt To Equity Ratio(Der), Current Ratio (Cr), Return on Equity (Roe), Price Earning Ratio (Per), Total Assets Turnover (Tato), Dan Earning Per Share (Eps) Terhadap Nilai Perusahaan Manufaktur Yang Terdaftar Di Bei. Jurnal Riset Mahasiswa Akuntansi, 6(2), 1–17. https://doi.org/10.21067/jrma.v6i2.4217

10. Oktasari, D. P., Widyanti, W., & Lestari, R. (2025). The influence of liquidity, solvency, profitability, and company size on firm value. International Journal of Management Studies and Social Science Research, 12(1), 75–86. https://doi.org/10.35315/dakp.v12i1.9115

11. Penman, S., & Reggiani, F. (2013). Returns to buying earnings and book value: Accounting for growth and risk. Review of Accounting Studies, 18(4), 1021–1049. https://doi.org/10.1007/s11142-013-9226-y

12. Purba, I. R., & Mahendra, A. (2022). Pengaruh Working Capital Turnover (Wct), Current Ratio (Cr), Debt To Equity Ratio (Der), Dan Return on Asset (Roa) Terhadap Nilai Perusahaan Pada Perusahaan Properti Dan Real Estate Yang Terdaftar Di Bursa Efek Indonesia Periode 2017-2020. Jurnal Riset Akuntansi & Keuangan, 8(1), 61–76. https://doi.org/10.54367/jrak.v8i1.1675

13. Putra, D. A., & Nurdiansyah, D. H. (2023). Pengaruh Current Ratio (CR), Return on Assets (ROA) dan Debt to Equity Ratio (DER) terhadap Nilai Perusahaan. Al-Kharaj : Jurnal Ekonomi, Keuangan & Bisnis Syariah, 5(5), 2134–2147. https://doi.org/10.47467/alkharaj.v5i5.2141

14. Ross, S. A. (1976). The arbitrage theory of capital asset pricing. Journal of Economic Theory, 13(3), 341–360. https://doi.org/10.1016/0022-0531(76)90046-6

15. Sitompul, S. K., Gultom, R., & Napitupulu, J. (2023). Faktor-Faktor Yang Mempengaruhi Nilai Perusahaan Dengan Inflasi Sebagai Variabel Moderasi Pada Perusahaan Manufaktur Sub Sektor Makanan Dan Minuman Yang Terdaftar Di Bursa Efek Indonesia Tahun 2018-2021. Jurnal Ilmu Manajemen METHONOMIX, 6(2), 123–134. https://doi.org/https://doi.org/10.46880/mtx.Vol6No2.pp123-134

16. Spence, M. (1973). Job market signaling. The Quarterly Journal of Economics. The Quarterly Journal of Economics, 87(3), 355–374. https://doi.org/https://doi.org/10.2307/1882010

17. Tsaniatuzaima, Q., & Maryanti, E. (2022). Pengaruh CR, ROA, DER terhadap Nilai Perusahaan dengan Good Corporate Governance sebagai Variabel Moderasi. Owner, 6(3), 2253–2265. https://doi.org/https://doi.org/10.33395/owner.v6i3.880

18. Wijaya & Fitriati. (2024). Pengaruh Profitabilitas, Ukuran Perusahaan dan Struktur Modal terhadap Nilai Perusahaan. Jurnal Ilmiah Universitas Batanghari Jambi, 24(2), 1707. https://doi.org/10.33087/jiubj.v24i2.5062

19. Wooldridge, J. M. (2020). ntroductory Econometrics: A Modern Approach (7th ed.).

Downloads

Published

2025-11-02

How to Cite

Pardede, A. A., R.A. Widyanti Diah Lestari, Nolla Puspita Dewi, & Sumantri. (2025). The Influence of Financial Performance and Macroeconomic Factors on Price to Book Value in Property and Real estate Companies in Indonesia. Jurnal Akuntansi AKUNESA, 14(1), 133–142. Retrieved from https://journal.unesa.ac.id/index.php/akunesa/article/view/43366

Issue

Vol. 14 No. 1 (2025): AKUNESA (September 2025) - In Progress

Section

Artikel
Abstract views: 0 , PDF Downloads: 0

Similar Articles

1 2 3 > >> 

You may also start an advanced similarity search for this article.