The Effects Of Firm Size And Capital Intensity On Firm Value : Evidence from Food and Beverage Companies Listed on the Indonesia Stock Exchange during 2023-2025
DOI:
https://doi.org/10.53866/profit.v4i1.1472Keywords:
firm size, capital intensity, firm value, positive accounting theory, Tobin’s QAbstract
This study examines the effects of firm size and capital intensity on firm value among food and beverage companies listed on the Indonesia Stock Exchange during 2023–2025. Positive accounting theory and signaling theory provide the interpretive framework. The study employs a quantitative associational design using secondary data from annual financial statements and stock market records. Purposive sampling yields 20 companies and 60 firm-year observations. Firm value is proxied by Tobin’s Q, firm size by the natural logarithm of total assets, and capital intensity by the ratio of net fixed assets to total assets. The analysis comprises descriptive statistics, regression diagnostics, and multiple linear regression. The estimated firm size coefficient is negative and statistically significant at the 5% level (b = −0.180; p = 0.043), contrary to the hypothesized positive effect. Capital intensity has a positive but statistically insignificant coefficient (b = 0.733; p = 0.438). The joint test is not significant at the 5% level (F = 2.725; p = 0.074), and the adjusted R² is 0.055, indicating limited explanatory power within the sample. However, the Glejser test indicates heteroskedasticity. Statistical significance based on conventional standard errors therefore requires cautious interpretation and verification using an appropriate standard error estimator.
References
Aprilyani, I., Widyarti, M. T. H., & Hamida, N. (2021). The effect of ERM, firm size, leverage, profitability and dividend policy on firm value (Evidence from food & beverage sub sector companies listed in IDX 2015–2019). Jurnal Aktual Akuntansi Keuangan Bisnis Terapan (AKUNBISNIS), 4(1), 65–75. https://doi.org/10.32497/akunbisnis.v4i1.2663
Bank Indonesia. (2025). Laporan perekonomian Indonesia 2024 [Indonesian economic report 2024]. https://www.bi.go.id/id/publikasi/laporan/Pages/LPI_2024.aspx
Bhattacharya, S. (1979). Imperfect information, dividend policy, and “the bird in the hand” fallacy. The Bell Journal of Economics, 10(1), 259–270. https://doi.org/10.2307/3003330
Brigham, E. F., & Houston, J. F. (2022). Fundamentals of financial management (16th ed.). Cengage Learning. https://www.cengageasia.com/TitleDetails/isbn/9780357517574
Chung, K. H., & Pruitt, S. W. (1994). A simple approximation of Tobin’s q. Financial Management, 23(3), 70–74. https://doi.org/10.2307/3665623
EMIS. (2023). Indonesia food and beverage sector report 2023–2024. https://www.emis.com/php/store/reports/ID/Indonesia_Food_and_Beverage_Sector_Report_2023-2024_en_790719893.html
EMIS. (2025). Indonesia food and beverage sector report 2025–2026. https://www.emis.com/php/store/reports/ID/Indonesia_Food_and_Beverage_Sector_Report_2025-2026_en_881770366.html
Fama, E. F., & French, K. R. (1998). Taxes, financing decisions, and firm value. The Journal of Finance, 53(3), 819–843. https://doi.org/10.1111/0022-1082.00036
Ghozali, I. (2016). Aplikasi analisis multivariete dengan program IBM SPSS 23 [Multivariate analysis using IBM SPSS 23] (8th ed.). Badan Penerbit Universitas Diponegoro. https://perpus.petra.ac.id/catalog/site/detail?id=149488
Hanlon, M., & Heitzman, S. (2010). A review of tax research. Journal of Accounting and Economics, 50(2–3), 127–178. https://doi.org/10.1016/j.jacceco.2010.09.002
Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3(4), 305–360. https://doi.org/10.1016/0304-405X(76)90026-X
Lestari, V. A., Maryanti, E., & Biduri, S. (2024). The gender diversity executive, thin capitalization, capital intensity on tax avoidance and firm value. AKRUAL: Jurnal Akuntansi, 16(1), 88–104. https://doi.org/10.26740/jaj.v16n1.p88-104
Meilanita, & Enalia, F. (2025). Pengaruh capital intensity, struktur modal, efektivitas aset, dan ukuran perusahaan terhadap nilai perusahaan subsektor food and beverage di Bursa Efek Indonesia [Effects of capital intensity, capital structure, asset utilization, and firm size on the value of food and beverage companies listed on the Indonesia Stock Exchange]. MABIS, 16(2), 184–194. https://doi.org/10.66003/mabis.v16i2.10596
Ningrum, G. M., & Khomsiyah, K. (2023). Does the investment opportunity set strengthen the effect of profitability, managerial ownership and capital structure on firm value? Journal of Business Social and Technology, 4(1), 152–168. https://doi.org/10.59261/jbt.v4i1.130
Patanduk, B. I., Damayanti, R. A., & Purisamya, A. J. (2024). Effect of enterprise risk management, leverage, and company size on firm value. Dinasti International Journal of Economics, Finance & Accounting, 5(5), 4840–4850. https://doi.org/10.38035/dijefa.v5i5.3403
Rajan, R. G., & Zingales, L. (1995). What do we know about capital structure? Some evidence from international data. The Journal of Finance, 50(5), 1421–1460. https://doi.org/10.1111/j.1540-6261.1995.tb05184.x
Richardson, G., & Lanis, R. (2007). Determinants of the variability in corporate effective tax rates and tax reform: Evidence from Australia. Journal of Accounting and Public Policy, 26(6), 689–704. https://doi.org/10.1016/j.jaccpubpol.2007.10.003
Richardson, S. (2006). Over-investment of free cash flow. Review of Accounting Studies, 11(2–3), 159–189. https://doi.org/10.1007/s11142-006-9012-1
Ross, S. A. (1977). The determination of financial structure: The incentive-signalling approach. The Bell Journal of Economics, 8(1), 23–40. https://doi.org/10.2307/3003485
Sari, R. P., & Witjaksono, A. (2021). The effect of enterprise risk management, firm size, profitability, and leverage on firm value. EAJ (Economic and Accounting Journal), 4(1), 71–81. https://doi.org/10.32493/eaj.v4i1.y2021.p71-81
Scott, W. R. (2015). Financial accounting theory (7th ed.). Pearson. https://psb.feb.ui.ac.id/index.php?id=49011&p=show_detail
Sekaran, U., & Bougie, R. (2016). Research methods for business: A skill-building approach (7th ed.). John Wiley & Sons. https://books.google.com/books?id=Ko6bCgAAQBAJ
Septyanto, D., & Nugraha, I. M. (2021). The influence of enterprise risk management, leverage, firm size and profitability on firm value in property and real estate companies listed on the Indonesian Stock Exchange in 2016–2018. KnE Social Sciences, 5(5), 663–680. https://doi.org/10.18502/kss.v5i5.8850
Spence, M. (1973). Job market signaling. The Quarterly Journal of Economics, 87(3), 355–374. https://doi.org/10.2307/1882010
Sudana, I. M. (2019). Manajemen keuangan perusahaan: Teori dan praktik [Corporate financial management: Theory and practice] (2nd ed.). Erlangga. https://e-library.ikopin.ac.id/index.php?id=18461&keywords=&p=show_detail
Watts, R. L., & Zimmerman, J. L. (1978). Towards a positive theory of the determination of accounting standards. The Accounting Review, 53(1), 112–134. https://doi.org/10.2308/TAR-4500569
Watts, R. L., & Zimmerman, J. L. (1986). Positive accounting theory. Prentice-Hall. https://library.bpk.go.id/koleksi/detil/jkpkbpkpp-p-1757
Yuwono, W., & Aurelia, D. (2021). Effect of profitability, leverage, institutional ownership, managerial ownership, and dividend policy on firm value. Journal of Global Business and Management Review, 3(1), 15–29. https://doi.org/10.37253/jgbmr.v3i1.4992
Downloads
Published
Issue
Section
License
Copyright (c) 2026 Nurunnisa Syahnania, Toufan Aldian Syah
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
