Profitability, Size, Investment Decisions and Liquidity Effects on Property Firm Value

Abstract

This study examines the influence of profitability, company size, investment decisions, and liquidity on firm value among Indonesian property and real estate companies in 2020–2023. Using Indonesia Stock Exchange data, the research measures profitability through Return on Assets (ROA), company size via natural logarithm of total assets, investment decisions using Price-to-Earnings Ratio (PER), and liquidity through Current Ratio (CR). Firm value is assessed using Tobin's Q. Through purposive sampling, 23 companies were selected for multiple linear regression analysis. Results indicate that profitability demonstrates significant positive effects on firm value, company size shows significant negative influence, liquidity exhibits significant negative impact, while investment decisions show no significant effect. Collectively, all variables significantly influence firm value, explaining the importance of financial management in property sector valuation.