Abstract
Firm value plays an important role for public companies because it can affect investor perceptions. The company is always trying to improve the quality of the company to be able to compete in the capital market to attract investors. The success of the company can only be achieved through good company management, improving company performance, so that in the end it can increase company value. This study aims to examine the factors that affect firm value in Indonesia. The factors used in this study are corporate social responsibility, environmental disclosure, ownership concentration, and earnings quality. The research sample is manufacturing companies on The Indonesia Stock Exchange with a research period of 2017-2019. The research sample consists of 127 observations. Data were analyzed using linear regression. The results of this study show that corporate social responsibility, environmental disclosure, and ownership concentration affected firm value, while earnings quality did not affect a firm's value in Indonesia. This study implies that non-financial factors determine to firm's value more than financial factors.
Highlights
Firm value is closely related to the value of shares, if the stock value of an entity is high, the firm's value is high (Zabetha, Tanjung, & Savitri, 2018)
All data have a homogeneous data distribution where the standard deviation value is smaller than the mean value, except for earning quality the data distribution is heterogeneous where the mean value is lower than the standard deviation
This study concludes that corporate social responsibility (CSR), environmental disclosure, and ownership concentration have a positive relationship with firm value, while earnings quality has no related with firm value
Summary
Firm value is closely related to the value of shares, if the stock value of an entity is high, the firm's value is high (Zabetha, Tanjung, & Savitri, 2018). The value of the companies can be used as a reference for an investor in making investment decisions. The company will always strive to grow the company value. Public companies increase the firm value to get a good perception from investors. Investor perception is very important because it can affect the firm's value. Making investment decisions requires information about the company's stock valuation
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