The Effect Of Profitability, Liquidity, Solvability And Activities On Corporate Values In Registered Food And Beverage Companies On The Indonesian Stock Exchange

Abstract

This study examines the impact of financial ratios specifically profitability, liquidity, solvability, and activity on firm value in the food and beverage sector listed on the Indonesia Stock Exchange (IDX) during 2021–2024. Amid economic volatility and rupiah depreciation, which significantly increased production costs due to imported raw materials, this research addresses how investors respond to financial signals in valuing companies. Using a quantitative approach, secondary data were collected from annual financial reports of 29 selected firms, resulting in 51 valid observations after data cleaning. Data were analyzed using multiple linear regression, preceded by classical assumption tests. The results show that profitability and activity have a significant positive effect on firm value, while solvability exerts a significant negative effect, and liquidity has no significant influence. These findings support Signaling Theory, indicating that only financially relevant and contextually credible information, such as operational efficiency and prudent leverage is perceived as strong signals by the market. This study contributes theoretically by reinforcing signaling mechanisms in emerging markets under macroeconomic stress, and practically by guiding corporate managers to prioritize asset efficiency and moderate debt levels to enhance firm value, while offering investors a refined framework for fundamental analysis in the food and beverage industry.