International Journal of Economics Development Research (IJEDR)
Vol. 6 No. 2 (2025): International Journal of Economics Development Research (IJEDR)

Unlocking Economic Potential: Financial and Governance Drivers of Firm Value in Indonesia’s Food and Beverage Sector

Yahya, Putri Aleyda (Unknown)
Priharta, Andry (Unknown)



Article Info

Publish Date
02 Mar 2025

Abstract

This study aims to analyze the effect of Good Corporate Governance (GCG), capital structure, and profitability on the value of manufacturing companies listed on the Indonesia Stock Exchange (IDX) for the period 2019-2023. In conditions of increasingly tight business competition, company value is an important indicator that reflects the company's performance and prospects, and attracts investor interest. This study uses a quantitative method with secondary data obtained from the annual reports of manufacturing companies on the IDX. The independent variables used are GCG, capital structure as measured by the Debt to Equity Ratio (DER), and profitability as measured by Return on Assets (ROA). The dependent variable is company value as measured using Price to Book Value (PBV). The results of the study show that GCG, capital structure, and profitability have a significant effect on company value, both partially and simultaneously. Good GCG implementation and optimal capital structure and profitability have been proven to be able to increase company value, which ultimately has a positive impact on investor confidence.

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Journal Info

Abbrev

ijedr

Publisher

Subject

Economics, Econometrics & Finance Social Sciences

Description

IJEDR focuses on economics, innovation, and investment. Dedicated to enhancing economics development a country, regional and the world in general. IJEDR invites papers on Economics field (Economic growth, Monetary and fiscal policy effect, Innovation practices, Innovation impact, Corporate finance, ...