Growth, Size, Profitability, and Capital Structure Effects on Metal and Food & Beverage Firm Value

Abstract

This study seeks to investigate the extent to which several financial determinants, namely firm growth, firm size, profitability, and capital structure, contribute to the enhancement of firm value. The research population comprises companies listed on the Indonesia Stock Exchange (IDX). Using a purposive sampling approach, the study selected manufacturing firms operating within the food and beverage as well as basic metal industry sectors that met the established sampling criteria. Data analysis was conducted using WarpPLS. The empirical results reveal that firm growth and capital structure exert a significant positive influence on firm value. In contrast, firm size and profitability were found to have no statistically significant impact on firm value. These findings suggest that potential investors should carefully evaluate key financial indicators before making investment decisions. Furthermore, the results highlight the importance for regulatory authorities to formulate policies that promote the availability of transparent, accurate, and reliable information, thereby supporting informed investment decision making.