Impact of Firm Size, Profitability, Liquidity, and Leverage on Property and Real Estate Firm Value

Abstract

This research examines how firm size, profitability, liquidity, and leverage influence firm value among Indonesian property and real estate companies between 2019-2023. Using Indonesia Stock Exchange data, the study measures firm size via Ln(total assets), profitability through Return on Assets (ROA), liquidity using Current Ratio (CR), and leverage via Debt to Equity Ratio (DER). Firm value is measured by Price to Book Value (PBV). Through purposive sampling, 15 companies were selected for multiple linear regression analysis. Findings reveal that firm size, profitability, and leverage individually exert significant positive effects on firm value, while liquidity demonstrates no significant impact. Collectively, all four variables show significant positive influence on firm value. These results emphasize the value of company size, profitability, and leverage in determining firm valuation within Indonesia's property sector.