Determinant Factors of Infrastructure Firm’s Value in Indonesia Stock Exchange

EasyChair Preprint 8570

Abstract

This study is aimed to examine the determining factors of firm value in the infrastructure sector of the Indonesia Stock Exchange (IDX).  More specifically, this study will test whether profitability, solvency and firm size have significant effect to the firm value for the infrastructure sector companies listed in IDX. Using the purposive sampling, this study obtains 30 companies from the 2018-2021 so that the total number of observations is 120 firm-years. The analysis result  conducted by data panel regression shows that profitability and firm size have a significant effect on the firm value at level 10% and 5%  respectively. The other finding is that solvency has an insignificant effect on firm value.  From this result, the study will imply that infrastructure sector firms in IDX have considered profitability and size in the effort of maximizing the company value and actually tend not to use debt as the major financing sources. 

Keyphrases: Profitability, firm size, firm value, solvability

@booklet{EasyChair:8570,
  author    = {Jasen Sugiarto Effendy and Ignatius Roni Setyawan},
  title     = {Determinant Factors of Infrastructure Firm’s Value in Indonesia Stock Exchange},
  howpublished = {EasyChair Preprint 8570},
  year      = {EasyChair, 2022}}