The Relationship Between Financial Performance and Firm Value: Empirical Evidence on Real Estate Companies in Indonesia

Intan Saputri Ayuningtiyas; Lely Novitasari

doi:10.55927/ijems.v3i4.146

Authors

Intan Saputri Ayuningtiyas Universitas W R Supratman Surabaya
Lely Novitasari Universitas W R Supratman Surabaya

DOI:

https://doi.org/10.55927/ijems.v3i4.146

Keywords:

Indonesia Stock Exchange, Financial Performance, Liquidity, Company Value, Profitability, Real Estate, Solvency

Abstract

This research investigates how financial performance influences firm value in Indonesian real estate companies listed on the Indonesia Stock Exchange between 2020 and 2023. Financial performance is assessed through liquidity, profitability, and solvency ratios, while firm value is measured using the Price to Book Value (PBV). The study applies a quantitative approach by analyzing secondary data from the financial reports of 25 firms over a four-year period, employing multiple linear regression. The findings reveal that profitability and solvency positively and significantly affect firm value, whereas liquidity shows no significant influence. These results suggest that investors place greater emphasis on profit-generating ability and capital structure stability compared to short-term debt-paying capacity when evaluating company value

References

Christiawan, Y. J., & Tarigan, J. (2007). Kepemilikan manajerial: Kebijakan hutang, kinerja dan nilai perusahaan. Jurnal Akuntansi dan Keuangan, 9(1), 1–8.

Farid, M. N., & Safitri, M. (2024). Pengaruh profitabilitas, struktur modal, dan ukuran perusahaan terhadap nilai perusahaan (studi pada perusahaan property dan real estate di BEI 2017–2023). Jurnal Ekonomi, Bisnis, dan Organisasi, 15(2), 101–112.

Hermuningsih, S., & Wardani, D. K. (2009). Faktor-faktor yang mempengaruhi nilai perusahaan pada perusahaan publik di Indonesia. Jurnal Siasat Bisnis, 13(2), 105–114.

Hidayat, T., Yahya, A., Ayuningtyas, E. A., & Tikaromah, O. (2025). Determinants of property and real estate firm value in Indonesia: Evidence from panel data analysis (2013–2024). Owner: Riset & Jurnal Akuntansi, 9(1), 45–60.

Kasmir. (2016). Analisis laporan keuangan. Jakarta: Rajawali Pers.

Pamungkas, A. C., & Risman, A. (2025). The role of financial performance in mediating the effect of sustainability on firm value: A study on property and real estate companies. The EUrASEANs: Journal on Global Socio-Economic Dynamics, 6(7), 123–136.

Pratiwi, I., & Susilo, H. (2020). Pengaruh struktur modal, profitabilitas, dan ukuran perusahaan terhadap nilai perusahaan. Jurnal Administrasi Bisnis, 75(1), 10–17.

Putra, I. G. A. A. (2017). Pengaruh profitabilitas, ukuran perusahaan, dan pertumbuhan penjualan terhadap struktur modal dan nilai perusahaan. E-Jurnal Ekonomi dan Bisnis Universitas Udayana, 6(3), 901–928.

Rudianto. (2013). Akuntansi manajemen (2nd ed.). Jakarta: Erlangga.

Setiawan, D., & Mulyana, A. (2021). Analisis faktor-faktor yang memengaruhi nilai perusahaan pada perusahaan real estate di Indonesia. Jurnal Manajemen dan Kewirausahaan, 23(3), 167–178.

Taswan, & Soliha, E. (2002). Pengaruh kebijakan pendanaan, kebijakan dividen, dan keputusan investasi terhadap nilai perusahaan. Jurnal Bisnis dan Ekonomi, 9(2), 149–163.

Wahyuni, S., & Hidayat, M. (2019). Pengaruh kinerja keuangan terhadap nilai perusahaan pada perusahaan property dan real estate. Jurnal Ilmiah Manajemen, 9(2), 152–162.