Determinants of Firm Sustainable Growth Before and After the COVID-19 Pandemic in Consumer Goods Industry Sector Companies

Abstract

This research was conducted to analyze the determining factors for sustainable growth and firm nominal value. Cash holding, capital gearing, asset turnover, current ratio, economic value added and intellectual capital are expected to be determinants of sustainable growth and firm nominal value with the moderating variables sustainable growth and financial distress risk as determinants of firm nominal value. Using purposive sampling, a sample of 26 companies was obtained that met the criteria, resulting in a sample of 182. The regression results showed that for 2015-2021, cash holding, asset turnover, EVA and intellectual capital had an influence on the sustainable growth rate. Cash holding and asset turnover influence nominal firm value. During the COVID-19 pandemic, the regression results show that cash holding, capital gearing, asset turnover and intellectual capital influence the sustainable growth rate. Capital gearing, asset turnover and EVA influence Firm Nominal value. The results of the paired sample test for all research variables before and after the COVID-19 pandemic were significant, meaning that the research variables experienced significant changes.