The Influence of Capital Structure, Profitability, and Liquidity on Company Value (Case Study of the Cigarette Manufacturing Industry Sub-Sector Listed on the IDX for the 2017 – 2022 Period)

¹Lina Agustin, ²Alberta Esti Handayani

Abstract

The purpose of this study is to examine how capital structure, profitability, and firm value affect cigarette companies listed on the IDX during the 2017-2022 period. The purpose of this study is to examine the influence of capital structure, profitability, and firm value on cigarette manufacturing companies listed on the Indonesia Stock Exchange (IDX) for the period 2017-2022. This study uses a quantitative approach with multiple regression analysis. The sample consists of five long-established cigarette businesses, generating company data spanning thirty years. used to ensure the validity of the model. The research findings indicate that business capital management practices have a significant negative effect on their overall performance. In addition, profitability has a noteworthy positive impact on firm value. In contrast, liquidity has no significant effect. At the same time, all studied factors significantly influence firm value. These results can help financial managers and investors make better decisions by analyzing a company’s internal performance indicators.