Financial Performance, Strategic Decisions, and Firm Value in Consumer Goods Companies

Abstract

Firm value can be understood as a reflection of how the capital market perceives a company’s overall performance and its future outlook, making it a vital consideration for investors in allocating their funds. This study investigates the role of profitability, liquidity, investment decisions, dividend policy, and sales growth in shaping firm value within primary consumer goods companies listed on the Indonesia Stock Exchange over the 2021–2024 period. A quantitative research design was applied by utilizing secondary data obtained from publicly available annual financial reports. The sample comprised 39 firms selected based on purposive sampling criteria, yielding a total of 156 firm-year observations. To examine the relationships between variables, multiple linear regression analysis was employed.The results indicate that profitability, liquidity, and sales growth have a positive effect on firm value, whereas investment decisions and dividend policies do not have a significant effect. These findings indicate that investors tend to respond more to financial performance indicators and business growth than to specific corporate policies when assessing firm value. This study implies that increasing firm value is more effectively achieved through strengthening profitability, sound liquidity management, and sustainable sales growth.