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

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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.

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    • Figure 1. Model path analysis
    • Figure 2. Empirical model of path analysis
    • Table 1. Companies on the Indonesia Stock Exchange (IDX) LQ-45
    • Table 2. Multiple regression analysis results
    • Table 3. Results of regression analysis coefficients
    • Conceptualization
      Gunarianto, Endah Puspitosarie
    • Formal Analysis
      Gunarianto, Sugeng Hadi Susilo
    • Funding acquisition
      Gunarianto, Endah Puspitosarie
    • Methodology
      Gunarianto, Endah Puspitosarie, Sugeng Hadi Susilo
    • Resources
      Gunarianto
    • Validation
      Gunarianto, Endah Puspitosarie
    • Visualization
      Gunarianto, Endah Puspitosarie
    • Writing – original draft
      Gunarianto, Endah Puspitosarie, Sugeng Hadi Susilo
    • Writing – review & editing
      Gunarianto, Endah Puspitosarie, Sugeng Hadi Susilo
    • Data curation
      Endah Puspitosarie, Sugeng Hadi Susilo
    • Investigation
      Endah Puspitosarie, Sugeng Hadi Susilo
    • Project administration
      Endah Puspitosarie
    • Software
      Endah Puspitosarie
    • Supervision
      Sugeng Hadi Susilo