The Influence of Current Ratio (CR), Return on Assets (ROA) and Independent Board of Commissioners on Company Value in Pharmaceutical Subsector Companies on the Indonesia Stock Exchange for the Period 2019 – 2023

Abstract

Government policies have an important role in regulating and supporting business development in the pharmaceutical subsector, which is crucial in creating an environment that supports innovation and company sustainability. This study aims to analyze the effect of current ratio, return on assets, and independent board of commissioners on firm value. The population of this study consists of 11 pharmaceutical subsector companies listed on the Indonesia Stock Exchange, with a period of 2019-2023. The purposive sampling technique was applied to ensure the sample met the specified criteria. The samples used in this study were 9 companies. The analysis used involves multiple linear regression, which is complemented by normality test, multicollinearity test, heteroscedasticity test, t test, and coefficient of determination test, with Eviews 10 as the analysis tool. The results showed that current ratio and independent board of commissioners have a negative and insignificant effect on firm value, while return on assets has a significant effect on firm value. These findings imply that companies need to continue to improve their performance to maintain competitiveness and gain investor confidence, facilitate access to external capital. In addition, companies must increase the role of supervision by the independent board of commissioners and maintain liquidity to achieve long-term excellence.