Articles

Factors Influencing Company Value on the Indonesian Stock Exchange: Insights from LQ45 Companies (2019-2023)

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This study examines the variables affecting the firm value (Tobin’s Q) of the Indonesian Stock Exchange’s LQ45 Index between 2019 and 2023. We assess sustainability scores (ESG Score) and some financial performances ratios i.e. return on assets (ROA), return on equity (ROE), and debt to equity ratio, whether each respective of these factors influence the firm value (Tobin’s Q) using quantitative analytical data obtained from the Indonesian Stock Exchange website. 41 of the 45 businesses that meet the study’s requirements are the subject of our analysis, yielding 205 samples in total. Eviews version 11 software was used to do multiple linear regression analysis on the data. All the independent factors (X1, X2, X3, and X4) have statistically significant individual effects on the dependent variable, according to our findings, which are based on the t-test results. The probability values for each of these variables are below 0.05. Furthermore, the F-test indicates that the independent factors taken together significantly affect the dependent variable, with a probability value of 0.000. Based on the determination coefficient test, the adjusted R square value is 63.12% which indicates that the independent variable significantly influences the dependent variable.

Differences in Financial Performance of LQ45 Companies Listed on the Indonesian Stock Exchange during the Covid-19 Pandemic

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The global economy has been hit by a crisis, including the Covid-19 pandemic, which is no different than what Indonesia is experiencing. The pandemic has infected and affected the economic power of all countries. Performance during a pandemic should be studied very diligently. This phenomenon led to the first research on Indonesian companies. The purpose of this study is to determine the company’s performance before the pandemic and during his Covid-19 pandemic. For this, the researcher uses the “strong” firms in the Indonesian capital market – his LQ-45 firms. A total of 45 and 21 companies from various sectors were obtained using a targeted random sampling method. This data is collected through annual financial reporting for the 2018-2019 pre-pandemic and 2020-2021 during the Co-19 pandemic. Variables used to define company performance are current ratio (CR), gearing (DER), total assets turnover (earnings), return on equity (ROE), and earnings per share (EPS) is. Using these variables is suggested by researchers as representative of each company’s financial metrics. The research method used is another test of paired data. A data normality test was previously performed and found that the data used were not normally distributed. Therefore, for further analysis to determine whether there were differences before and during the Covid-19 pandemic, the Wilcoxon paired difference test was used in the analysis. We found no difference in firm performance between CR and DER variables before and during. However, when it comes to revenue, ROE and EPS, there are differences in company performance in the LQ-45. Apart from that, these results also show that business performance has declined during the Covid-19 pandemic.