Indonesian Financial Review

The Effect of Liquidity and Profitability on Firm Value at PT Adhi Karya (SOE) Public Listed Company During 2012–2023

2025-07-25T00:44:07+00:00

This study revisits the relevance of liquidity and profitability as financial indicators of firm value in the context of a state-owned enterprise (SOE). Focusing on PT Adhi Karya (Persero) Tbk, a publicly listed construction SOE in Indonesia, the research covers the 2012–2023 period using a longitudinal approach. Liquidity is proxied by the Current Ratio (CR), profitability by Return on Assets (ROA), and firm value by the Price to Earnings Ratio (PER). Data were obtained from audited financial statements and analyzed using multiple linear regression. Results show that CR and ROA have no significant partial or simultaneous effect on PER. These findings suggest that conventional financial ratios may not fully capture market valuation in SOEs, where performance is shaped by both commercial and public-policy objectives. This study contributes to understanding the limitations of traditional valuation models in politically influenced firms.

The Effect of Firm Characteristics, Political Connections, and Ownership Structure on Tax Avoidance: Evidence from Non-Cyclical Consumer Sector in Indonesia

2025-06-30T22:57:07+00:00

This study examines the effect of firm characteristics—profitability, leverage, and firm size—along with political connections and ownership structure (institutional and managerial ownership) on tax avoidance among non-cyclical consumer companies listed on the Indonesia Stock Exchange (IDX) from 2019 to 2023. Using a panel data approach with 45 firm-year observations and regression analysis via E-Views 12, the results reveal that profitability and leverage negatively influence tax avoidance. However, firm size, political connections, institutional ownership, and managerial ownership show no significant individual effect. Collectively, these factors have a statistically significant impact. The study contributes to the literature by highlighting the multidimensional nature of tax avoidance behavior and its link to both internal and external corporate governance factors.

The Effect of Liquidity and Capital Structure on Profitability at Pt Siantar Top Tbk 2013-2022 Period

2025-07-01T00:32:33+00:00

This study investigates the effect of liquidity and capital structure on profitability at PT Siantar Top Tbk from 2013 to 2022. Using a quantitative approach and multiple regression analysis, liquidity is measured by the current ratio, capital structure by the debt-to-equity ratio, and profitability by the net profit margin. The findings show that liquidity does not have a significant partial effect on profitability, while capital structure has a significant negative impact. However, both variables simultaneously influence profitability significantly. The adjusted R² value of 86.9% indicates that these financial ratios strongly explain changes in profitability. This study highlights the importance of managing debt effectively while optimizing the use of liquid assets. The results provide practical insights for financial decision-making in the consumer goods sector.

The Impact of Information and Firm Size on Earnings Management in Indonesia’s Primary Consumer Sector Companies

2025-10-27T15:31:09+00:00

This study examines the influence of information asymmetry and firm size on earnings management in Indonesian listed firms. Using panel data analysis, the research evaluates both individual and joint effects of these variables. Descriptive statistics indicate a moderate level of earnings management, with firms exhibiting both income-increasing and income-decreasing adjustments. The results of hypothesis testing reveal that information asymmetry alone does not significantly affect earnings management (p = 0.1764), while firm size has a significant negative effect (p = 0.0001), suggesting that larger firms engage in less opportunistic reporting. However, the F-test shows that information asymmetry and firm size jointly have a significant impact on earnings management (p = 0.036), explaining 34.72% of the variation in the dependent variable. These findings align with agency theory, which emphasizes managerial discretion under information imbalance, and signaling theory, which highlights the strategic use of earnings to communicate firm performance. The study underscores the importance of governance and monitoring mechanisms in mitigating earnings manipulation in Indonesian firms.

The Influence of Financial Performance, Debt Level, and Sales Growth on Tax Avoidance in Indonesian Banking Companies (2019–2023)

2025-07-13T12:03:51+00:00

This study examines the influence of financial performance, debt level, and sales growth on tax avoidance in banking companies listed on the Indonesia Stock Exchange (IDX) from 2019 to 2023. A quantitative approach was employed using purposive sampling to select 7 companies that met the criteria, resulting in 35 observations after removing outliers for normality. The data were analyzed using panel data regression with the Common Effect Model and processed using EViews 12. The findings show that financial performance has a significant negative effect on tax avoidance, while debt level and sales growth do not have significant effects. The adjusted R-squared value of 52.16% indicates that the independent variables explain more than half of the variation in tax avoidance. These results contribute to the understanding of tax avoidance behavior in the banking sector and offer insight for regulators in designing tax compliance policies.

Panel Data Analysis of Investment Decisions and Firm Value in the Indonesian Consumer Goods Industry

2025-07-28T12:59:52+00:00

This study aims to analyze the influence of business risk, investment decisions, and good corporate governance on firm value. The research was conducted using secondary data derived from financial statements of food and beverage sub-sector companies listed on the Indonesia Stock Exchange (IDX) from 2019 to 2023. The independent variables are business risk, investment decisions, managerial ownership, institutional ownership, and independent commissioners, while firm value serves as the dependent variable. Panel data regression is employed using EViews 12. The study finds that only investment decisions have a statistically significant and positive effect on firm value, aligning with signaling theory.

Financial Determinants of Firm Value in Indonesia's Energy Sector: The Role of Intellectual Capital, Sales Growth, and Firm Size

2025-07-31T23:22:27+00:00

This study examines the impact of intellectual capital, sales growth, and firm size on firm value in energy-sector manufacturing companies listed on the Indonesia Stock Exchange (IDX) from 2019 to 2023. Using panel data regression with the Common Effect Model (CEM), 35 companies were selected through purposive sampling. Intellectual capital was measured using the Value Added Intellectual Coefficient (VAIC), while sales growth and firm size were proxied by revenue growth and total assets, respectively. Firm value was assessed using the Price to Book Value (PBV) ratio. None of the independent variables have a statistically significant effect on firm value, either partially or simultaneously. These findings contrast with prior studies and suggest that firm value in capital-intensive sectors may be more influenced by external factors such as market volatility or regulatory policies. The study recommends that future research integrate both internal and external determinants better to explain firm value dynamics in the energy industry.

Modeling Entrepreneurial Intentions among University Students: A Behavioral Finance Perspective Using PLS-SEM

2025-08-05T01:53:43+00:00

This study investigates the factors influencing entrepreneurial interest among university students, focusing on the roles of self-esteem, entrepreneurial knowledge, and self-efficacy. Using a structural modeling approach, entrepreneurial interest is analyzed as the dependent variable influenced by these psychological and cognitive constructs. A key aim of the study is to examine the mediating role of entrepreneurial knowledge between self-efficacy and entrepreneurial interest. The results reveal that both self-esteem and entrepreneurial knowledge have direct and significant effects on entrepreneurial interest. Notably, self-efficacy does not influence entrepreneurial interest directly but exerts its effect indirectly through entrepreneurial knowledge, indicating a full mediation. This finding challenges the assumption that self-belief alone is sufficient to foster entrepreneurial motivation and highlights the importance of knowledge acquisition as a cognitive pathway toward entrepreneurial engagement. The study offers practical implications for improving entrepreneurship education—particularly in developing strategies that integrate confidence-building with knowledge-focused learning.

Tax Avoidance in the Energy Sector: The Impact of Transfer Pricing, Firm Size, and Inventory Intensity

2025-10-25T20:19:45+00:00

This study aims to examine and empirically test the effects of transfer pricing, firm size, and inventory intensity on tax avoidance in energy sector companies listed on the Indonesia Stock Exchange (IDX) during the period from 2020 to 2024. This research employs a quantitative method using secondary data in the form of financial statements. The population in this study consists of 40 energy sector companies listed on the IDX from 2020 to 2024. The sampling technique employed is purposive sampling, involving 15 companies over 5 years, resulting in a total of 75 data samples. The analysis technique applied is panel data regression analysis, using Eviews 12 software. The results show that transfer pricing, firm size, and inventory intensity simultaneously have a significant effect on tax avoidance. However, partially, transfer pricing has no significant effect on tax avoidance, firm size has a significant effect on tax avoidance, and inventory intensity does not have a significant effect on tax avoidance.

Joint Effects of Liquidity, Leverage, and Asset Efficiency on Profitability: Evidence from PT Akasha Wira (2014–2024)

2025-08-13T13:40:33+00:00

This study examines the effect of the Current Ratio (CR), Debt to Equity Ratio (DER), and Total Asset Turnover (TATO) on the Net Profit Margin (NPM) of PT Akasha Wira International Tbk from 2014 to 2024. Using a quantitative descriptive approach, secondary data from the company’s audited annual reports were analyzed through descriptive statistics, classical assumption tests, multiple linear regression, and hypothesis testing (t-test and F-test) with IBM SPSS 29.0. The findings reveal that CR, DER, and TATO individually have no significant effect on NPM. However, when tested simultaneously, the three variables have a significant influence on NPM. The coefficient of determination (R²) of 0.904 indicates that these variables explain 90.4% of the variation in NPM, while 9.6% is attributed to other factors not included in the model.

Profitability and Valuation Ratios as Predictors of Stock Prices: Contemporary Evidence from Indonesia’s Capital Market

2025-08-11T05:28:19+00:00

This study examines the impact of profitability and valuation ratios, as measured by Net Profit Margin (NPM) and Price-to-Book Value (PBV), on the stock prices of companies listed on the Indonesia Stock Exchange (IDX). Motivated by inconsistent findings in prior research, this study employs purposive sampling based on 12 annual observations and applies multiple linear regression, along with classical assumption tests. Results show that NPM positively and significantly affects stock prices, while PBV has a positive but statistically insignificant effect at the 5% level. The adjusted R² of 0.730 indicates that 73% of stock price variation is explained by the two variables, with 27% influenced by other factors. Findings confirm the role of profitability as a strong predictor of stock prices in Indonesia’s capital market and provide practical implications for investors and corporate managers in improving firm market value.

The Significance of Financial Performance Indicators on Stock Price: Evidence from PT Selamat Sempurna Tbk

2025-10-29T20:01:14+00:00

This study aims to determine the Effect of Return on Investment, Return on Equity and Dividend Payout Ratio on the Stock Price of PT Selamat Sempurna Tbk for the 2014-2023 Period. This study uses a quantitative method with a descriptive approach. The data analysis methods used are descriptive statistical tests, classical assumption tests (normality tests, multicollinearity tests, heteroscedasticity tests, and autocorrelation tests), multiple linear regression analysis, determination coefficient tests, and hypothesis tests (t-tests and f-tests) processed through the SPSS (Stastical Product and Service Solution) version 27 program. The results show that Return on Investment (ROI) has a significant negative effect, Return on Equity (ROE) has a positive effect, and Dividend Payout Ratio (DPR) has a negative effect on the stock price of PT Selamat Sempurna Tbk during 2014–2023.

Bankruptcy Prediction Analysis of PT Bank Muamalat Indonesia Tbk for the Period 2015–2022 Using the Altman Z-Score and Springate Models

2025-10-12T05:12:23+00:00

This study analyzes bankruptcy prediction for PT Bank Muamalat Indonesia Tbk during 2015–2022 using the Altman Z-Score and Springate models. As Indonesia’s first Islamic bank, PT Bank Muamalat has faced challenges such as capital difficulties that could threaten its financial stability. Using descriptive quantitative methods, this research measures bankruptcy potential through financial ratios. The Z-Score model categorizes the bank as generally healthy, though some years indicate potential bankruptcy, while the Springate model consistently shows a healthy condition. The findings suggest that PT Bank Muamalat Indonesia Tbk needs to strengthen its business strategies and improve financial management to maintain stable profitability. This analysis is expected to assist investors in making informed investment decisions and to support future research in the field. Furthermore, the study contributes to developing better financial strategies and provides valuable insights for stakeholders in understanding the bank’s financial health.