The Effect of Financial Performance, Risk, and Liquidity on Firm Value in the Manufacturing Industry Sector in Indonesia
Keywords:
Financial Performance, Firm Value, Risk Management, Liquidity, Manufacturing SectorAbstract
This study investigates the effect of financial performance, risk, and liquidity on firm value in the manufacturing sector in Indonesia. Using a sample of 60 manufacturing companies listed on the Indonesia Stock Exchange, the research employs a quantitative approach with data analyzed through SPSS version 26. Financial performance was measured by Return on Assets (ROA), risk by Debt-to-Equity Ratio, and liquidity by Current Ratio. The Price-to-Book Ratio represented firm value. The results reveal that financial performance and liquidity have a significant positive effect on firm value, while risk has a negative effect. These findings suggest that manufacturing companies in Indonesia can enhance their market value by improving profitability and liquidity while effectively managing financial risk.
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