Measuring Business Performance Through Managerial Aspects on Foods and Beverages Subsectors

Abstract

The purpose of this research is to look into the impact of business size, return on assets, and leverage on firm value. Total assets, number of employees, and total sales are used to estimate the size of a company. The ROA ratio is a proxy for return on assets. The debt-to-total-asset ratio is a proxy for leverage. Quantitative data is used in this type of research. All manufacturing companies in the foods and drinks sub-sector listed on the Indonesia Stock Exchange (IDX) in 2019 were used in this study. This study's hypothesis testing is based on secondary data and purposive sampling, with 16 companies meeting the corporate criteria. Data gathering for secondary data is done through documentation. The multiple regression test of cross-section data, the classical assumption test, the correctness of the estimator model (goodness of fit), and hypothesis testing are the analytical methods employed. According to the conclusions of this study, size of a company has a significant positive influence on firm value, return on assets has no significant effect on firm value, and leverage has a considerable and negative effect on firm value.