Analysis of Determinants of Firm Value in Companies Listed on the LQ-45 Index of the Indonesian Stock Exchange
Jouzar Farouq Ishak (a*), Neneng Dahtiah (a), Asy Syiffa Dewi Saraswati (a), Claudia Mutiara Mina Azzahra (a), Syakira Maharani Maulana (a), Raihani Putri Nabila (a)

(a) Politeknik Negeri Bandung
Jalan Gegerkalong Hilir, Bandung Barat 40559, Indonesia
*jouzar.farouq[at]polban.ac.id

Abstract

In 2015, countries worldwide adopted 17 Sustainable Development Goals (SDGs), where SDG number 9 is related to building resilient industries, encouraging inclusive and sustainable industrialization, and encouraging innovation. SDGs are a global commitment to improve the welfare of society for a better life. Intellectual capital is a form of industry that supports the SDGs with three main organizational elements, namely human capital, structural capital, and customer capital, related to knowledge and technology that can provide value to the company. This research aims to examine the role of intellectual capital, profitability, and company size on firm value. Firm value is significant because it describes the condition of the company which can influence shareholders^ views of the company so that each company owner will try to show good performance so that potential shareholders are interested and invest capital in the company. This research uses the t-test method at a significance of 5% and data analysis in this research uses multiple regression linear analysis with IBM SPSS Statistics 25. A research sample of companies that are on the Liquid Index (LQ)-45 on the Indonesia Stock Exchange (IDX) from 2018 to 2023. The results revealed that profitability is the factor that has the biggest impact on firm value. This research implies that as a LQ-45 index companies maintain firm value by increasing profitability.

Keywords: Intellectual Capital- Profitability- Firm Size- Firm Value

Topic: Sustainable development