Journal of Fundamental Management (JFM)
Vol. 6 No. 1 (2026): MARET 2026

The Effects of Leverage and Profitability on Firm Value across Quantile Levels

Putri Andari Ferranti (Unknown)
Cut Edwina (Unknown)

Article Info

Publish Date
20 Mar 2026

Abstract

This study examines the effext of leverage and profitability on firm value across different quantile levels. Leverage, profitability, and firm value are measured by debt to equity ratio, return on asset, and enterprise value respectively. The method used is quantile regression. The results show that DER has a positive and statistically significant effect on firm value in the lower and middle quantiles, but its influence weakens and becomes insignificant at higher quantiles. This finding suggests that leverage contributes to value creation primarily for Indonesian infrastructure firms with lower valuation levels, consistent with the trade-off theory, whereas high-performing firms may derive less marginal benefit from additional debt.

Copyrights © 2026




Citation Download
RIS
EndNote, Reference Manager, ProCite
BibTex
Latex, Jabref
Original Source
Download Original
Google Scholar
Check in Google Scholar
Journal Info
Journal of Fundamental Management (JFM)
Website

Abbrev

jfm

Publisher

Universitas Mercu Buana

Subject

Decision Sciences, Operations Research & Management Economics, Econometrics & Finance Social Sciences

Description

ournal of Fundamental Management is an academic journal published by the Mercubuana University S1 Management Study Program. The aim of JFM is to promote innovative thinking in the field of management and other related fields. This journal focuses primarily on promoting research results related to ...