Company value analysis: Sales, assets, growth opportunities and leverage in LQ-45 companies (Indonesia Stock Exchange)
Company value plays a significant role in investment decisions, company performance assessment, and risk analysis. In addition, there is uncertainty or inconsistency in the relationship between factors such as sales, assets, and leverage that can affect company value. The study aims to analyze the e...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
LLC "CPC "Business Perspectives"
2023-12-01
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| Series: | Investment Management & Financial Innovations |
| Subjects: | |
| Online Access: | https://www.businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/19293/IMFI_2023_04_Gunarianto.pdf |
| _version_ | 1826904013123092480 |
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| author | Gunarianto Endah Puspitosarie Sugeng Hadi Susilo |
| author_facet | Gunarianto Endah Puspitosarie Sugeng Hadi Susilo |
| author_sort | Gunarianto |
| collection | DOAJ |
| description | Company value plays a significant role in investment decisions, company performance assessment, and risk analysis. In addition, there is uncertainty or inconsistency in the relationship between factors such as sales, assets, and leverage that can affect company value. The study aims to analyze the effect of sales growth, asset growth, and leverage on company value in companies listed on the Indonesia Stock Exchange, especially in the LQ-45 index during the 2021–2022 period. The research method uses a quantitative approach with statistical tools and hypothesis testing. Regression analysis through path analysis models is used to test the proposed hypothesis. The results showed asset growth of 15.42%, debt-equity ratio of 1.7797, and high Price to Book Value (36.2721). Nonetheless, leverage does not act as a mediator in the relationship between asset growth and company value, defying the Modigliani-Miller theory. The finding highlights the complexity of such factors in the context of LQ-45 companies, emphasizing the need for prudent asset management and debt policy to enhance competitiveness. The findings have important implications for financial management and business strategy in a dynamic and competitive environment. |
| first_indexed | 2024-03-09T01:03:33Z |
| format | Article |
| id | doaj.art-391fb508c71b44b49191395368f4172b |
| institution | Directory Open Access Journal |
| issn | 1810-4967 1812-9358 |
| language | English |
| last_indexed | 2025-02-17T08:04:28Z |
| publishDate | 2023-12-01 |
| publisher | LLC "CPC "Business Perspectives" |
| record_format | Article |
| series | Investment Management & Financial Innovations |
| spelling | doaj.art-391fb508c71b44b49191395368f4172b2025-01-03T00:22:41ZengLLC "CPC "Business Perspectives"Investment Management & Financial Innovations1810-49671812-93582023-12-0120438639910.21511/imfi.20(4).2023.3119293Company value analysis: Sales, assets, growth opportunities and leverage in LQ-45 companies (Indonesia Stock Exchange)Gunarianto0https://orcid.org/0000-0001-9519-9806Endah Puspitosarie1https://orcid.org/0000-0001-8689-150XSugeng Hadi Susilo2https://orcid.org/0000-0003-3077-2039Dr., Lecturer, Department of Accounting, Widyagama University, IndonesiaMaster of Science, Lecturer, Department of Sharia Banking Finance, Widyagama University, IndonesiaDr., Lecturer, Department of Mechanical Engineering, State Polytechnic of Malang, IndonesiaCompany value plays a significant role in investment decisions, company performance assessment, and risk analysis. In addition, there is uncertainty or inconsistency in the relationship between factors such as sales, assets, and leverage that can affect company value. The study aims to analyze the effect of sales growth, asset growth, and leverage on company value in companies listed on the Indonesia Stock Exchange, especially in the LQ-45 index during the 2021–2022 period. The research method uses a quantitative approach with statistical tools and hypothesis testing. Regression analysis through path analysis models is used to test the proposed hypothesis. The results showed asset growth of 15.42%, debt-equity ratio of 1.7797, and high Price to Book Value (36.2721). Nonetheless, leverage does not act as a mediator in the relationship between asset growth and company value, defying the Modigliani-Miller theory. The finding highlights the complexity of such factors in the context of LQ-45 companies, emphasizing the need for prudent asset management and debt policy to enhance competitiveness. The findings have important implications for financial management and business strategy in a dynamic and competitive environment.https://www.businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/19293/IMFI_2023_04_Gunarianto.pdfasset growthcompany valuegrowth opportunitiesleveragesales growth |
| spellingShingle | Gunarianto Endah Puspitosarie Sugeng Hadi Susilo Company value analysis: Sales, assets, growth opportunities and leverage in LQ-45 companies (Indonesia Stock Exchange) Investment Management & Financial Innovations asset growth company value growth opportunities leverage sales growth |
| title | Company value analysis: Sales, assets, growth opportunities and leverage in LQ-45 companies (Indonesia Stock Exchange) |
| title_full | Company value analysis: Sales, assets, growth opportunities and leverage in LQ-45 companies (Indonesia Stock Exchange) |
| title_fullStr | Company value analysis: Sales, assets, growth opportunities and leverage in LQ-45 companies (Indonesia Stock Exchange) |
| title_full_unstemmed | Company value analysis: Sales, assets, growth opportunities and leverage in LQ-45 companies (Indonesia Stock Exchange) |
| title_short | Company value analysis: Sales, assets, growth opportunities and leverage in LQ-45 companies (Indonesia Stock Exchange) |
| title_sort | company value analysis sales assets growth opportunities and leverage in lq 45 companies indonesia stock exchange |
| topic | asset growth company value growth opportunities leverage sales growth |
| url | https://www.businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/19293/IMFI_2023_04_Gunarianto.pdf |
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