<![CDATA[Purpose: This study investigates the relationship between firms’ financial health and stock price in Indonesian manufacturing firms, and examines whether firm size and the Covid-19 period condition this relationship. Methodology/approach: Using balanced panel data of 32 listed manufacturing firms over 2018–2023, the study applies fixed-effects panel regression with year fixed effects. Financial health is proxied by Altman Z-Score, firm size is measured by the natural logarithm of total assets, and the Covid-19 period is defined as 2020–2021 using a dummy variable. Findings: The results indicate that better financial health is associated with higher stock prices. Firm size strengthens the influence of financial health on stock price, suggesting that the market rewards financial health signals more strongly for larger firms. Conversely, the Covid-19 period weakens the sensitivity of stock price to financial health, implying that systemic uncertainty during crisis reduces the market’s reliance on firm-level fundamentals. Practical and Theoritical contribution/Originality: The study extends signaling theory by showing that the valuation relevance of financial health is context-dependent across firm characteristics and crisis periods in an emerging market. Research Limitation: The sample is limited to 32 manufacturing firms and relies on closing stock price and a single financial health proxy (Z-Score).]]>
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