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October 10, 2025International Journal of Application on Economics and Business0 citations

The Factors That Affecting Firm Value of Basic Materials Companies

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NNNatália Natália

Key Points

  • Institutional ownership is positively linked to firm value, suggesting its importance for company performance.
  • Leverage and efficiency show insignificant positive impacts on firm value in the examined basic materials sector.
  • Through multiple linear regression, 33 samples from 11 companies were analyzed to draw these conclusions.
  • The study highlights that managerial ownership adversely affects firm value, indicating potential governance issues.

Abstract

The research was carried out to empirically test the influence of leverage, managerial ownership, institutional ownership, efficiency, and firm size on the firm value of the basic materials companies listed on the Indonesia Stock Exchange in 2020-2022. The research design applied was descriptive statistics, and the sample selection technique used was the purposive sampling method. The number of samples used was 33 samples from 11 companies using multiple linear regression analysis techniques. The data in the research were processed through the EViews 12 program. This research obtained results where leverage and efficiency had an insignificant positive effect on firm value, managerial ownership had an insignificant negative effect on firm value, institutional ownership had a significant positive effect on firm value, and company size had a significant negative effect on firm value.

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Cite This Study

Natália Natália (2025) studied this question.

synapsesocial.com/papers/68e861907ef2f04ca37e3d07https://doi.org/10.24912/ijaeb.v3i1.358-366
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Also Consider

Synapse has enriched 5 closely related papers on similar clinical questions. Consider them for comparative context:

  1. 1The Influence of Corporate Social Responsibility (CSR), Company Size, Leverage and Investment Decisions on Company Financial Performance (Empirical Study of Basic Materials Companies Listed on the Indonesia Stock Exchange 2019-2023)2024
  2. 2FACTORS AFFECTING CORPORATE FINANCIAL PERFORMANCE IN THE BASIC MATERIALS INDUSTRY IN INDONESIA2024
  3. 3Internal Factors Affecting Firm Value (Case Study of Manufacturing Companies in Indonesia)2024 · 1 citations
  4. 4The Role of Cash Holding, Good Corporate Governance, Sales Growth, and Working Capital Turnover on Company Value: Empirical Evidence from the Basic Materials Sector on the Indonesia Stock Exchange2025
  5. 5The Influence of Environmental Performance, Green Accounting, and Profitability on Firm Value: A Study on Energy and Basic Materials Companies Listed on the IDX and Proper (2019-2023)2025