Determinant Factors Analysis of Company Value (Empiral Study on Health Industry Sector during the Covid-19 Pandemic)

Wahyuni, Sri and Tursinawati, Anita Dewi and Dirgantari, Novi and Hapsari, Ira (2022) Determinant Factors Analysis of Company Value (Empiral Study on Health Industry Sector during the Covid-19 Pandemic). IOSR Journal of Business and Management (IOSR-JBM), 24 (4). pp. 36-42. ISSN 2278-487X

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Abstract

Background: The COVID-19 pandemic has tremendously impacted the world economy, including Indonesia. The economic conditions on the verge of a crisis prompted companies to develop strategies to survive. Various policies were implemented in order to improve the company's efficiency and and boost its investor values. As a result, determining the company's worth during the COVID-19 outbreak and investigating the elements that influence it is critical. The determinants of firm value tested include institutional ownership, financial performance, firm size, and independent board of commissioners. Materials and methods: The data used in this study is secondary data in quarterly reports. Specifically, the Health Sector listed on the Indonesia Stock Exchange (IDX) during the 2019-2021 timeframe was utilized as the sample for this study. The sampling technique used was purposive sampling, which resulted in a sample of 65 enterprises that met the criteria. Multiple regression analysis is the data analysis technique that was used. Results: F test results show a statistically significant level of 0.000 < 0.05, it may be inferred that institutional ownership, financial performance, firm size, and independent board of commissioners simultaneously affect a value of the firm. It indicates that the research model is fit. The results of the individual sample test (t-test) show that the variables of financial performance and the board of commissioners have a positive effect on firm value. In contrast, institutional ownership and firm size have no impact on firm value. Conclusion: The results of this study indicate that during the covid pandemic, the value of health sector companies has decreased. At the same time, the most influential determinant is financial performance.

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