The Effect Of Inflation, Exchange Rate, And Profitability On Firm Value In The Industrials Sector Listed On The Indonesia Stock Exchange (2021–2024)
Abstract
This study aims to examine the effect of inflation, exchange rate, and profitability on firm value in industrial sector companies listed on the Indonesia Stock Exchange during the 2021–2024 period. The study employs a quantitative approach using secondary data obtained from annual financial statements and official macroeconomic publications. Firm value is measured using Price to Book Value (PBV), profitability is proxied by Return on Assets (ROA), inflation is measured using the Consumer Price Index, and exchange rate is represented by the Rupiah against the US Dollar. The data were analyzed using multiple linear regression after fulfilling classical assumption tests. The results show that profitability has a positive effect on firm value, while exchange rate movements have a negative effect on firm value. In contrast, inflation does not affect firm value during the observation period. These findings indicate that internal financial performance plays a more important role in determining firm value, while exchange rate conditions remain a relevant external factor for industrial firms.
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EKOMBIS REVIEW: Jurnal Ilmiah Ekonomi dan Bisnis is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
