Determinants of Firm Value: The Role of Capital Structure, Profitability, and Firm Size in Indonesian Food and Beverage Companies: Determinants of Firm Value: The Role of Capital Structure, Profitability, and Firm Size in Indonesian Food and Beverage Companies

rini novianti

Authors

rini novianti STIE IBMT

Keywords:

capital structure, profitability, firm size, firm value, capital structure, profitability, firm size, firm value

Abstract

This study aims to examine the effects of capital structure, profitability, and firm size on the firm value of companies in the food and beverage sub-sector listed on the Indonesia Stock Exchange (IDX) during the 2021–2025 period. This study employs a quantitative approach using secondary data obtained from companies’ annual financial statements. Capital structure is measured using the Debt-to-Equity Ratio (DER), profitability is measured using Return on Assets (ROA), firm size is measured using the natural logarithm of total assets (LNTA), and firm value is measured using Price-to-Book Value (PBV). The sample was selected using purposive sampling based on predetermined criteria, resulting in 9 companies and 54 firm-year observations. Data were analyzed using multiple linear regression with the coefficient of determination, F-test, and t-test using SPSS. The results indicate that capital structure, profitability, and firm size simultaneously have a significant effect on firm value. Partially, capital structure and profitability have a significant effect on firm value, whereas firm size does not have a statistically significant effect on firm value. These findings indicate that capital structure and profitability are important factors associated with firm value among food and beverage companies listed on the IDX during the study period, while firm size does not demonstrate a significant partial relationship with firm value.

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Determinants of Firm Value: The Role of Capital Structure, Profitability, and Firm Size in Indonesian Food and Beverage Companies