Growth and Liquidity on Firm Value: The Role of Mediating Profitability

Abstract

Companies in the food and beverage subsector are one of the industries that attract investors and play a significant role in driving Indonesia's economic growth. Company value provides an overview of the company's ability to operate the assets owned by the company. This study aims to determine the effect of Growth and liquidity on firm value with the role of profitability as a mediating variable in food and beverage sub-sector companies listed on the Indonesia Stock Exchange for the period 2014 - 2023. The data collection method used in this study is purposive sampling of food and beverage sub-sector companies listed on the Indonesia Stock Exchange for 2014 - 2023, with a selected sample of 11 companies. Data processing was done using the SPSS application, which used descriptive statistical data analysis techniques and inferential statistics. The results of this study indicate that Growth has no significant effect on firm value. Liquidity has a significant negative effect on firm value. Profitability has a significant positive impact on firm value. Growth has a significant positive impact on profitability. Liquidity has a significant positive impact on profitability. Profitability can mediate the effect of Growth and liquidity on firm value.