Firm Size and Leverage on Firm Value in the Technology Sector Listed on the Indonesia Stock Exchange – AJHSSR

Firm Size and Leverage on Firm Value in the Technology Sector Listed on the Indonesia Stock Exchange

Firm Size and Leverage on Firm Value in the Technology Sector Listed on the Indonesia Stock Exchange

ABSTRACT: This study aims to analyze the influence of firm size and leverage on firm value in technology sector companies listed on the Indonesia Stock Exchange (IDX). Using data from companies listed on the IDX from 2021 to 2023, this research applies statistical methods to examine the direct effects of firm size and leverage on firm value. This research employs a quantitative method with panel data analysis, applying the Partial Least Square model to test the hypotheses using SmartPLS 4.The findings indicate that firm size has a significantly positive effect on firm value. In contrast, leverage does not significantly affect the firm value. These results enhance understanding of the dynamics between firm size, leverage, and firm value. This study provides valuable insights for investors and corporate managers in the technology sector, emphasizing not only the importance of managing firm size and leverage to enhance firm value but also the consideration of other variables and factors.

Keywords -Firm Size, Leverage, Firm Value, Technology Sector.