Citation:

Cristian Kenny, Maryati, Ika Fibrianti, Nina Febriana Dosinta, Khristina Yunita, Elok Heniwati. "Financial Performance, Leverage, and Firm Value During COVID-19 in Indonesia" International Research Journal of Economics and Management Studies, Vol. 3, No. 1, pp. 116-120, 2024.

Abstract:

This study investigates financial performance, leverage, and firm value during COVID-19 in Indonesia. This study uses Tobin’s Q as a proxy for firm value in LQ45 index companies for 2020-2022. The findings of this study indicate that Return on Assets and Return on Equity as proxies for financial performance have a significant effect on firm value. Then, Debt to Asset Ratio and Debt to Equity Ratio as leverage proxies do not affect firm value. The findings of this study imply that during COVID-19 in Indonesia, the company must maintain and improve financial performance to ensure business continuity and signal for investor decisions.

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Keywords:

Financial Performance, Leverage, Firm Value.