The Effect of Accounting and Non-Accounting Information on Firm Value in the Indonesia Stock Exchange

                2023-11-27
              

Published

                97-108
              

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Nur Fidya E P

Accounting Study Program, Faculty of Economics and Business, Muhammadiyah University of Makassar

Wa Ode Rayyani

Accounting Study Program, Faculty of Economics and Business, Muhammadiyah University of Makassar

Abstract

Purpose: This study aims to analyze the effect of accounting information, including earnings per share (EPS), return on equity (ROE), debt to equity ratio (DER), and book value per share (BVPS), as well as non-accounting information consisting of firm size, auditor reputation, and institutional ownership on firm value of companies listed on the Indonesia Stock Exchange.

Research Methodology: This study uses a quantitative approach with multiple linear regression analysis. The sample consists of 120 manufacturing companies listed on the Indonesia Stock Exchange during 2019–2023, resulting in 600 observations selected through purposive sampling. Secondary data were obtained from annual financial reports and analyzed using SPSS version 26 after classical assumption testing.

Results: The results indicate that EPS, ROE, BVPS, firm size, and auditor reputation have a positive and significant effect on firm value. Meanwhile, DER has a negative and significant effect, while institutional ownership has no significant effect. Simultaneously, the independent variables explain 63.8% of firm value variation.

Conclusions: Accounting and non-accounting information are important determinants of firm value. Profitability, capital structure, firm size, and auditor reputation contribute to enhancing firm value, whereas institutional ownership does not significantly influence market valuation.

Limitations: This study is limited to manufacturing companies listed on the Indonesia Stock Exchange during 2019–2023 and uses Tobin Q as a proxy for firm value.

Contribution: This study provides empirical evidence on the role of accounting and non-accounting information in determining firm value and offers insights for investors, managers, and future researchers in capital market decision-making.

Accounting Information Firm Value, Manufacturing Companies Non-Accounting Information Tobin’s Q

How to Cite

Fidya E P, N., & Rayyani, W. O. . (2023). The Effect of Accounting and Non-Accounting Information on Firm Value in the Indonesia Stock Exchange. Jurnal Teknika Dan Informatika, 3(2), 97-108. https://doi.org/10.52909/j57nvk69

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