The Effect of Investment Decisions, Dividend Policy, Firm Size, and Profitability on Firm Value in the Indonesia Stock Exchange (Case Study: Companies Listed in the LQ

Abstract

This study analyzes the effect of investment decisions, dividend policy, firm size, and profitability on firm value among companies listed in the LQ-45 Index on the Indonesia Stock Exchange (IDX) for the period 2019–2023. High firm value reflects investor confidence in the company's performance. Investment decisions play a role in increasing profits and competitiveness, while dividend policy can attract investors. Firm size reflects operational stability, and profitability indicates management efficiency in generating earnings, all of which contribute to enhancing firm value. The research method used is a quantitative approach with multiple linear regression analysis. The data used are secondary data obtained from company financial reports published by the Indonesia Stock Exchange. The results show that investment decisions, dividend policy, and firm size have a positive and significant effect on firm value, while profitability has no significant effect on firm value.