The Impact of ROA, ROE, Leverage, and Firm Size on Non-Financial Firm Value in IDX

Abstract

This study investigates the effect of Return on Assets (ROA), Return on Equity (ROE), leverage, and firm size on firm value of non‑financial companies listed on the Indonesia Stock Exchange (IDX) during 2022–2024, a period characterized by post‑pandemic recovery and heightened macroeconomic uncertainty. Building on prior empirical evidence that reports inconsistent impacts of profitability, capital structure, and size on firm value, this research fills a temporal gap by employing recent panel data and jointly testing four key internal factors. An associative quantitative design is applied, using secondary annual financial data from 430 non‑financial firms (1,290 firm‑year observations) and multiple linear regression with Tobin’s Q as a proxy for firm value. Classical assumption tests indicate an acceptable model, and the F‑test confirms that ROA, ROE, leverage, and firm size simultaneously affect firm value. The empirical findings show that ROA and leverage have a significant positive effect on firm value, whereas ROE and firm size are statistically insignificant, implying that asset efficiency and optimal debt usage are more salient signals for investors than equity returns or corporate scale in this period.