The Effect of Financial Performance and Capital Structure on the Company Value in Food and Beverage Companies Listed On The Indonesia Stock Exchange

Maria Afriani Manul; Muhamad Rifa'i; Moch. Nurhidayat

doi:10.64515/irdhijsch.v2i2.165

Authors

Maria Afriani Manul Management, Faculty of Economics, University of Tribhuwana Tunggadewi, Malang, Indonesia
Muhamad Rifa'i Management, Faculty of Economics, University of Tribhuwana Tunggadewi, Malang, Indonesia
Moch. Nurhidayat Management, Faculty of Economics, University of Tribhuwana Tunggadewi, Malang, Indonesia

DOI:

https://doi.org/10.64515/irdhijsch.v2i2.165

Keywords:

Capital Structure, Financial Performance, Company Value , Food and Beverage, Indonesia Stock Exchange

Abstract

This study examines the relationship between capital structure, financial performance, and firm value using secondary data from 15 food and beverage companies listed on the Indonesia Stock Exchange (2021–2023). Data analysis includes multiple linear regression and assumption testing.. The findings indicate that a company's value is significantly increased by its financial performance, suggesting that more profitability increases its value. Similar to how capital structure significantly affects firm value, a favourable debt-to-equity ratio also positively impacts a company's market perception. Moreover, capital structure and financial performance work together to influence corporate value. The findings above underscore the significance of investors considering a firm's profitability and capital structure when making investment choices to optimise returns. This report offers insights for research and investment plans by presenting data from Indonesia's food and beverage industry.

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