Factors Affecting the Firm Value of Financial IPO Companies on the Development Board

Abstract

This study aims to examine and analyze the effects of profitability, liquidity, leverage, firm size, and growth on firm value. The research population consists of companies listed on the Indonesia Stock Exchange (IDX), with the sample selected using a purposive sampling method. During the classical assumption testing process, several extreme observations (outliers) were removed from the initial sample to obtain a regression model that satisfied the required statistical assumptions. Multiple linear regression analysis was employed to test the proposed hypotheses. The simultaneous test results indicate that all independent variables jointly have a significant effect on firm value. However, the partial test results reveal that profitability has a negative and significant effect, while firm size has a positive and significant effect on firm value. In contrast, liquidity, capital structure, and company growth are found to have no significant effect on the market valuation of the firms included in this study.