Analysis of determinants of firm value: a study of listed companies in the tobacco sub-sector on the Indonesia Stock Exchange (2012-2024)
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Abstract
This study aims to analyze the effects of profitability (ROA), leverage (DER), and liquidity (CR) on firm value, as measured by Tobin's Q, among companies in the tobacco subsector listed on the Indonesia Stock Exchange during the period 2012-2024. A quantitative causality approach was employed using the Ordinary Least Squares (OLS) multiple linear regression method with Heteroscedasticity and Autocorrelation Consistent (HAC) standard errors using the Newey-West estimator (Bartlett kernel, fixed bandwidth = 4) on three sample companies: PT Gudang Garam Tbk (GGRM), PT Hanjaya Mandala Sampoerna Tbk (HMSP), and PT Wismilak Inti Makmur Tbk (WIIM), with a total of 39 observations. The results indicate that, both partially and simultaneously, profitability, leverage, and liquidity do not significantly affect firm value (p > 0.05; Wald F-statistic = 0.776; Prob. 0.515). An R-squared value of 10.96% indicates that most of the variation in firm value is explained by factors outside the model that influence market sentiment. This finding underscores the uniqueness of the tobacco industry as a sector facing multi-dimensional pressures that cannot be fully captured through conventional financial ratios
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How to Cite
Turnip, A. A. ., Patrisia, S. ., Gunawan, D. . and Cahyadi, W. . (2026) “Analysis of determinants of firm value: a study of listed companies in the tobacco sub-sector on the Indonesia Stock Exchange (2012-2024)”, Jurnal Mantik, 10(1), pp. 233-240. doi: 10.35335/mantik.v10i1.7176.
References
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Sudiyatno, B., Puspitasari, E., Suwarti, T., & Asyif, M. M. (2020). Determinants of firm value and profitability: Evidence from Indonesia. Journal of Asian Finance, Economics and Business, 7(11), 769–778. https://doi.org/10.13106/jafeb.2020.vol7.no11.769
WHO. (2021). Tobacco industry interference and public health. Bulletin of the World Health Organization, 99(6), 393–394. https://www.who.int/publications/journals/bulletin
Wooldridge, J. M. (2020). Introductory econometrics: A modern approach (7th ed.). Cengage Learning.
Wu, S., Li, X., Du, X., & Li, Z. (2022). The Impact of ESG Performance on Firm Value?: The Moderating Role of Ownership Structure. Sustainability Accounting, Management and Policy Journal, 1–22. https://doi.org/ 10.3390/su142114507
Zaleski, P. A. (2024). A useful interpretation of firm level Tobin’s q. Managerial and Decision Economics, 45(8), 5381–5389. https://doi.org/10.1002/mde.4332
Alshakhanbeh, M. A. A. Q., Pitchay, A. A., Mia, M. A., Nairoukh, R. M. B., & Abd Jalil, M. I. (2025). The impact of liquidity and leverage on firm value of public listed firms in Jordan. Information Management and Business Review, 17(1), 103–116. https://ojs.amhinternational.com/index.php/imbr/article/view/4343
Brealey, R. A., Myers, S. C., & Allen, F. (2020). Principles of Corporate Finance (13th ed.). McGraw-Hill. https://www.mheducation.com
Brigham, E. F., & Houston, J. F. (2019). Fundamentals of Financial Management (15 (ed.)). Cengage Learning. https://www.cengage.com
CRIF. (2024). The tobacco processing industry in Indonesia: Growth dynamics and the impact of Government Regulation No. 28/2024. https://www.id.crifasia.com/resources/industry-insights/
Crosbie, E., Tran, B., Figueiredo, B., Severini, L., Severini, G., & Sebrié, E. (2024). Tobacco industry strategies to influence the regulation of new and emerging tobacco and nicotine products in Latin America and the Caribbean. Revista Panamericana de Salud Pública, 48, e43. https://doi.org/10.26633/RPSP.2024.43
Djasuli, M., Amalia, S. Y., Ayu3, D. R., & Hasanah, F. (2025). Cigarette tax dilemma: suppressing consumption or harming tobacco farmers. COSTING: Journal of Economic, Business and Accounting, 8, 2020–2024.
El Ghoul, S., Guedhami, O., & Kim, Y. (2022). Environmental responsibility and firm valuation. Journal of Banking & Finance, 134, 106329. https://doi.org/10.1016/j.jbankfin.2021.106329
Huang, C.-J., & Lien, D. (2022). Financial leverage and firm valuation. Review of Quantitative Finance and Accounting, 59, 879–902. https://doi.org/10.1007/s11156-021-01011-9
Hunjra, A. I., Chani, M. I., & Ijaz, M. S. (2021). Impact of liquidity on firm value. Journal of Asian Business and Economic Studies, 28(3), 253–267. https://doi.org/10.1108/JABES-04-2020-0044
Indrati, M., & Artikasari, L. A. (2023). Effect Of Leverage , Company Size And Working Capital Turnover On Firm Value With Profitability As Mediation Variable. Jurnal Ekonomi, 12(02), 611–624. https://ejournal.seaninstitute.or.id/index.php/Ekonomi/article/view/1772
Jihadi, M., Vilantika, E., Hashemi, S. M., Arifin, Z., Bachtiar, Y., & Sholichah, F. (2021). The effect of liquidity, leverage, and profitability on firm value: Empirical evidence from Indonesia. The Journal of Asian Finance, Economics and Business, 8(3), 423–431. https://doi.org/10.13106/jafeb.2021.vol8.no3.0423
Kasmir. (2019). Analisis Laporan Keuangan. PT Raja Grafindo Persada.
Kraft, H., Schwartz, E., & Weiss, F. (2023). Growth options and firm valuation. Review of Finance, 27(4), 1251–1289. https://doi.org/10.1093/rof/rfac066
Le, T. T., & Nguyen, C. P. (2023). Regulation and firm valuation. Economic Analysis and Policy, 78, 185–197. https://doi.org/10.1016/j.eap.2023.01.012
Maukonda, R. M., Assih, P., & Subiyantoro, E. (2024). Mengoptimalkan Nilai Perusahaan?: Mengungkap Peran Moderator Kualitas Audit dalam Hubungan Leverage ,. JRAP (Jurnal Riset Akuntansi Dan Perpajakan), 11(1), 25–38. https://doi.org/10.35838/jrap.2024.011.01.03
Nguyen, H. C., & Duong, H. K. (2025). The impact of sustainability reporting on firm value, financial performance, and Risk: An empirical study of Vietnam’s listed companies. Journal of Management and Governance, 23(1), 45–56. https://link.springer.com/article/10.1007/s10997-025-09746-y
Risky, A. H., & Yuniningsih, Y. (2024). The Role of Profitability in Moderating the Effect of Leverage, Liquidity, and Firm Size on Firm Value. World Journal of Advanced Research and Reviews, 23(2), 1044–1050. https://doi.org/10.30574/wjarr.2024.23.2.2239
Ross, S. A. (1977). The determination of financial structure: The incentive-signalling approach. The Bell Journal of Economics, 8(1), 23–40. https://doi.org/10.2307/3003485
Ross, S. A., Westerfield, R. W., & Jordan, B. D. (2018). Corporate Finance (12 (ed.)). McGraw-Hill Education. https://www.mheducation.com
Sari, R. N., & Wijaya, A. (2021). Tobin’s Q as firm value proxy. Jurnal Akuntansi Multiparadigma, 12(3), 521–536. https://doi.org/10.21776/ub.jamal.2021.12.3.30
Sudiyatno, B., Puspitasari, E., Suwarti, T., & Asyif, M. M. (2020). Determinants of firm value and profitability: Evidence from Indonesia. Journal of Asian Finance, Economics and Business, 7(11), 769–778. https://doi.org/10.13106/jafeb.2020.vol7.no11.769
WHO. (2021). Tobacco industry interference and public health. Bulletin of the World Health Organization, 99(6), 393–394. https://www.who.int/publications/journals/bulletin
Wooldridge, J. M. (2020). Introductory econometrics: A modern approach (7th ed.). Cengage Learning.
Wu, S., Li, X., Du, X., & Li, Z. (2022). The Impact of ESG Performance on Firm Value?: The Moderating Role of Ownership Structure. Sustainability Accounting, Management and Policy Journal, 1–22. https://doi.org/ 10.3390/su142114507
Zaleski, P. A. (2024). A useful interpretation of firm level Tobin’s q. Managerial and Decision Economics, 45(8), 5381–5389. https://doi.org/10.1002/mde.4332
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