The Influence of Investment Decisions, Funding Decisions, and Macroeconomics on Company Value in State-Owned Enterprises Listed on the Indonesia Stock Exchange, with Financial Risk and Profitability as Intervening Variables

Abstract

Investors find it very appealing to invest in the form of shares for State-Owned Enterprises (BUMN) because these businesses have capital that is entirely or largely owned by the government. Not affected by the Covid-19 pandemic shock, investors think that the price of BUMN shares in the infrastructure sector offers excellent corporate value. The Covid-19 pandemic has slowed Indonesia's economic expansion, since February 2020. It should be remembered that many businesses have experienced negative corporate profitability at some point. With financial risk and profitability acting as intermediary variables, this study seeks to determine the degree to which the independent variables of investment decisions, funding decisions, and macroeconomics influence the dependent variable, namely company value. This quantitative study employs a census sampling technique at seven state-owned infrastructure companies from 2014 to 2021. This study employs SEM analysis (Structural Equation Modeling) based on components or variants, namely Partial Least Squares (PLS), with the help of Smart PLS 4.0 software. The study's findings indicate that macroeconomics has no direct and significant impact on financial risk. It does, however, have a significant impact on profitability and company value. Financial risk and profitability are unaffected by investment decisions. It does, however, have a significant impact on company value. Funding decisions have no direct influence on company value. It does, however, have a significant impact on financial risk and profitability. Financial risk has no direct influence on company value. Profitability has no direct influence on company value. For the indirect relationship between the financial risk and profitability variables, it does not mediate the x versus y variables.