Impact of Hedge on the Firm Value of Consumer Cyclicals Companies Listed in the Indonesian Stock Exchange

Abstract

One indicator that shows how effective and efficient a company is in achieving its goals is its financial performance. Maintaining and improving financial performance is mandatory for a company to continue to exist and attract investors. This financial information functions as a means of information, a tool for management accountability to business owners, a representation of company success indicators, and consideration for decision making. Tobin's Q is an indicator that can be used to measure a company's financial performance from an investment perspective. The aim of this research is to find out the conditions and determinant factors in analyzing financial performance in consumer cyclical companies for the 2015-2022 period. The research method uses dynamic panel data regression with the Arellano-Bond Generalized Method of Moment (GMM) approach on 24 consumer cyclical sector companies from 2015 to 2022 listed on the BEI. The research results show that partially the company value in the previous period (Tobin’s Q(-1)) has a significant positive effect and can be backward looking towards achieving high and sustainable company value (Tobin’s Q) in the next period. Profitability (ROA) has a significant positive effect on company value (Tobin’s Q). This shows the company's prospects for sustainability in the future.