The Effect of Sales Growth, Profitability, and Company Size on Leverage

Susanti, Merry; Dewi, Sofia Prima; Sufiyati, Sufiyati; Susanto, Liana

doi:10.2991/assehr.k.220404.104

Cited by 1 publication

(1 citation statement)

References 16 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…The findings of this study support the notion that growth opportunities impact company value, in line with previous research (Utami, 2020). Investors assess company value based on stock prices, and investment decisions contribute to overall company value (Susanti et al, 2022). Therefore, growth prospects are important in attracting investors and driving company value.…”

Section: Modelsupporting

confidence: 89%

Company value analysis: Sales, assets, growth opportunities and leverage in LQ-45 companies (Indonesia Stock Exchange)

Gunarianto,

Puspitosarie,

Hadi Susilo

2023

Investment Management and Financial Innovations

View full text Add to dashboard Cite

Company value plays a significant role in investment decisions, company performance assessment, and risk analysis. In addition, there is uncertainty or inconsistency in the relationship between factors such as sales, assets, and leverage that can affect company value. The study aims to analyze the effect of sales growth, asset growth, and leverage on company value in companies listed on the Indonesia Stock Exchange, especially in the LQ-45 index during the 2021–2022 period. The research method uses a quantitative approach with statistical tools and hypothesis testing. Regression analysis through path analysis models is used to test the proposed hypothesis. The results showed asset growth of 15.42%, debt-equity ratio of 1.7797, and high Price to Book Value (36.2721). Nonetheless, leverage does not act as a mediator in the relationship between asset growth and company value, defying the Modigliani-Miller theory. The finding highlights the complexity of such factors in the context of LQ-45 companies, emphasizing the need for prudent asset management and debt policy to enhance competitiveness. The findings have important implications for financial management and business strategy in a dynamic and competitive environment.

show abstract

Section: Modelsupporting

confidence: 89%