Proceedings of the International Conference on Entrepreneurship, Leadership and Business Innovation (ICELBI 2022)

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The Effect of Debt Financing on Firm Value in Manufacturing Companies Listed in Indonesia Stock Exchange

Authors
Anita Roosmalina Matusin1, *, Catur Rahayu Martiningtiyas1, Ina Oktaviana Matusin1, Ramadini Safitri1, Cyntia Monalisa Hutauruk1
1Management Study Program, Universitas Trisakti, Jakarta, Indonesia
*Corresponding author. Email: anita.roosmalina@trisakti.ac.id
Corresponding Author
Anita Roosmalina Matusin
Available Online 10 January 2024.
DOI
10.2991/978-94-6463-350-4_6How to use a DOI?
Keywords
debt financing; firm growth; firm size; firm value; inflation; interest rate
Abstract

This study aims to examine the effect of debt financing on firm value. The dependent variable used in this study is firm value, with the independent variable debt financing (STDA, LTDA, TDTE), firm size, firm growth, inflation, and interest rate control variables. The research sample used in this study is manufacturing companies listed on the Indonesia Stock Exchange (IDX) for the 2015–2020 period. By using a purposive sampling technique, the number of samples studied was 60 manufacturing companies. The study's results found that debt financing (STDA) and interest rates had a significant negative effect on firm value. Meanwhile, debt financing (LTDA and TDTE), firm value, firm growth, and inflation have no impact on firm value. Managerial implications: to increase firm value, companies must reduce the use of short-term debt to finance assets and anticipate borrowing rates.

Copyright
© 2023 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the International Conference on Entrepreneurship, Leadership and Business Innovation (ICELBI 2022)
Series
Advances in Economics, Business and Management Research
Publication Date
10 January 2024
ISBN
978-94-6463-350-4
ISSN
2352-5428
DOI
10.2991/978-94-6463-350-4_6How to use a DOI?
Copyright
© 2023 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Anita Roosmalina Matusin
AU  - Catur Rahayu Martiningtiyas
AU  - Ina Oktaviana Matusin
AU  - Ramadini Safitri
AU  - Cyntia Monalisa Hutauruk
PY  - 2024
DA  - 2024/01/10
TI  - The Effect of Debt Financing on Firm Value in Manufacturing Companies Listed in Indonesia Stock Exchange
BT  - Proceedings of the International Conference on Entrepreneurship, Leadership and Business Innovation (ICELBI 2022)
PB  - Atlantis Press
SP  - 47
EP  - 55
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-350-4_6
DO  - 10.2991/978-94-6463-350-4_6
ID  - Matusin2024
ER  -