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Journal : Journal of Management and Informatics

Impact of Liquidity and Sales Growth on Company Value: A Case Study of Telecommunications Firms on the Indonesian Stock Exchange Rahadjeng , Indra Riyana; Melyani, Melyani; Anwar, Dian Mohamad; Rafik, Ahmad; Emita, Isyana; Indrarti, Wahyu; Sari, Dian Indah
Journal of Management and Informatics Vol. 4 No. 3 (2025): December Season | JMI: Journal of Management and Informatics
Publisher : University of Science and Computer Technology

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.51903/jmi.v4i3.196

Abstract

This study investigates the impact of liquidity and sales growth on company value within the Indonesian telecommunications sector from 2020-2024. Grounded in Signaling Theory, this research employs a quantitative panel data regression on a saturated sample of five IDX-listed firms. Using the Price-to-Book Value ratio as a proxy for company value, the analysis tests the influence of the Current Ratio (liquidity) and annual sales growth. The selected Fixed Effect Model reveals that both liquidity and sales growth have a significant positive effect, confirming they act as credible signals influencing investor valuation.