The Effect Of Profitability, Liquidity, And Firm Size On Firm Value In Coal Mining Companies Listed On The Indonesia Stock Exchange During 2020–2024
Abstract
The mining sector, particularly coal mining companies, plays an important role in Indonesia’s economy and attracts investor attention in the capital market. Firm value reflects investor confidence in a company’s future prospects and can be influenced by several internal factors, including profitability, liquidity, and firm size. This study aims to analyze the simultaneous and partial effects of profitability, liquidity, and firm size on firm value in coal mining companies listed on the Indonesia Stock Exchange during the 2020–2024 period. This study uses a quantitative approach with panel data regression analysis. The sample consists of 43 coal mining companies selected through purposive sampling, resulting in 215 firm-year observations. Firm value is measured using Price to Book Value (PBV), profitability using Return on Assets (ROA), liquidity using Current Ratio (CR), and firm size using the natural logarithm of total assets. The results show that profitability, liquidity, and firm size simultaneously have a significant effect on firm value. Partially, profitability has a positive and significant effect on firm value, while liquidity and firm size do not significantly affect firm value. These findings indicate that investors tend to pay greater attention to a company’s profitability in assessing firm value.