Non-Cyclical Company Value in Indonesia: Analysis of Determining Factors Using an Intervening Variable Approach

Abstract

This study investigates the influence of liquidity, capital structure, and operational efficiency on corporate value within Indonesian non-cyclical sector firms, employing profitability as an intervening mechanism. Grounded in the significance of maximizing shareholder wealth as a long-term performance indicator, this research examines 129 non-cyclical companies traded on the Indonesia Stock Exchange between 2020 and 2023. Through purposive sampling methodology, 82 companies were selected for analysis. Utilizing a quantitative descriptive framework with SmartPLS analytical tools, the findings demonstrate that capital leverage ratios and asset utilization efficiency directly enhance firm valuation. Conversely, debt financing exhibits an inverse relationship with profitability metrics. These outcomes underscore the critical importance of strategic capital management and resource optimization in value creation.