Business Management Vol.
5 No 1 Februari 2026 p-ISSN:2828-7606, e-ISSN:2828-8203 DOI: 10.
58258/bisnis.
10261/https://ejournal.
org/index.
php/Bisnis The Effect of Profitability and Leverage on Firm Value in Food & Beverage Sub-Sector Companies Listed on the Indonesia Stock Exchange (IDX) for the Period 2020Ae2024 Sri Mulyani1.
Emy Setiawati Melati Putri2.
Dewi Nur Anisah3 Universitas Pertiwi.
Indonesia Article Info Abstract Article history:
Accepted: 23 January 2026 Publish: 1 February 2026 This study aims to examine the effect of Return on Equity (ROE) and Debt to Asset Ratio (DAR) on Firm Value.
The population used in this study consists of all food & beverage sub-sector companies listed on the Indonesia Stock Exchange (IDX) during 2020Ae2024.
This research employs a quantitative method.
The sampling technique used is purposive sampling based on predetermined The total population of food and beverage companies is 102, and after applying the sampling criteria, 29 companies were selected over a 5-year period, resulting in 145 research samples.
The data used are secondary data in the form of financial statements obtained from w.
id and the respective company websites.
The analytical technique applied is multiple linear regression using IBM SPSS 25 software.
The results show that Return on Equity (ROE) has no significant effect on Firm Value.
Meanwhile.
Debt to Asset Ratio (DAR) has a significant effect on Firm Value.
Simultaneously, the results indicate that Return on Equity (ROE) and Debt to Asset Ratio (DAR) have a positive effect on Firm Value.
Keywords:
Return on Equity (ROE).
Debt to Asset Ratio (DAR).
Firm Value.
This is an open access article under the Lisensi Creative Commons Atribusi-BerbagiSerupa 4.
0 Internasional Corresponding Author:
Dewi Nur Anisah Universitas Pertiwi.
Indonesia Email Coresspondent: 23110037@pertiwi.
INTRODUCTION
Tax is one of the largest sources of state revenue.
It is the main component of the State Budget (APBN), where the primary income comes from taxation.
One of the objects of taxation is income, regulated in Law No.
36 of 2008, which defines income as any economic gain received by taxpayers from any source that can be used for consumption or to increase wealth.
This taxation law serves as a guideline for companies in determining their tax obligations.
(Sudarno, 2.
Profitability also plays an important role in efforts to maintain the company's sustainability in the long term, as this variable reflects whether the company has very good opportunities in the future.
(Wulandari & Efendi, 2.
In 2020, there was a decline in revenue due to the impact of the pandemic.
The three sectors that experienced the highest decreases were the food and beverage sector, which dropped by 92.
47%, other services by 90.
90%, and the transportation and warehousing sector by 90.
According to the Ministry of Communication and Information of Indonesia, 2022, in 2019, the contribution of the food and beverage industry to GDP reached 40%, in 2020, non-oil and gas GDP was 38.
29%, in 2021 non-oil and gas GDP was 42%, and in 2022, non-oil and gas GDP was 38.
Stock prices also declined.
165 | The Effect of Profitability and Leverage on Firm Value in Food & Beverage Sub-Sector Companies Listed on the Indonesia Stock Exchange (IDX) for the Period 2020Ae2024 (Sri Mulyan.
Business Management e-ISSN : 2828-8203, p-ISSN: 2828-7606 according to the Indonesia Stock Exchange (IDX), in 2020 it dropped drastically by 37.
This was due to the impact of COVID-19, which caused changes in the capital market as investors faced a high level of uncertainty regarding the effects resulting from COVID19.
(Nurhayati & Ludmilla, 2.
Return On Equity (ROE) is a ratio that shows the ability to generate profits on investments based on the book value of shareholders.
The higher this ratio, the better, meaning the position of the company's owners is stronger.
(Septika Wati & Arifin, 2.
Leverage is the ratio used by a company to assess its ability to meet short-term or long-term debt through debt-based financing.
(Putri, 2.
Debt to Total Asset Ratio (DAR) is a ratio commonly used to measure the extent to which a company can still be financed by debt and the company's ability to meet the needs and obligations of the assets owned by the company.
(Slamet Adi Prastyo et al.
, 2.
Company Value indicates the level of public trust in the company's performance and image, which has been shaped through operational processes from its founding until now.
This value represents an estimate of the current value of expected economic benefits in the (Wulanningsih & Agustin, 2.
Figure 1.
Average Movement of Company Values in the Food and Beverage Subsector Based on Graph 1, it shows a fluctuation gap in the company's value from December 2019 to June 2023.
Looking back to 2019.
December showed a value of 1.
In June 2020, it decreased to 0.
88, and by December it dropped to 0.
In 2021, it increased in June to 30 and in December to 2.
In 2022, it still experienced an increase, with June showing 72 and December rising to an average of 5.
However, in June 2023, it experienced a very significant decrease to 2.
This company's value signals the performance level achieved by the company and also impacts the company's overall value.
By using the company's value, prospective investors can observe whether the company is undervalued or overvalued.
(Shofia & Kadarningsih, 2.
THEORETICAL STUDY 1 Agency Theory Agency Theory in the Great Dictionary of the Indonesian Language (KBBI), agency is defined as an office of a company agent that is related to the business activities of the administrative division of government.
Agency can also be formulated as the capacity and ability possessed by an agent as the source and origin of their actions, particularly concerning the relationship between individuals and social structures.
general, the concept of agency is applied to explain the individual's awareness in managing self-consciousness.
It also explains the individual's capacity to act independently and free from structural determination.
Agents are contracted for certain tasks for principals and have the responsibilities or duties assigned by the principals.
Principals have the obligation to provide compensation to agents for the services rendered by the agents.
(Sari, 2.
2 Trade Off Theory 166 | The Effect of Profitability and Leverage on Firm Value in Food & Beverage Sub-Sector Companies Listed on the Indonesia Stock Exchange (IDX) for the Period 2020Ae2024 (Sri Mulyan.
Business Management e-ISSN : 2828-8203, p-ISSN: 2828-7606 Trade-off theory model according to (Hilda et al.
, 2.
It explains that the use of debt to a certain limit will increase the value of the company.
However, once the maximum limit is exceeded, additional debt will lead to a decrease in the company's The use of debt can save or reduce the taxes paid by the company, but on the other hand, debt can reduce the company's profits because it may trigger an increased risk of the company failing to meet its obligations, which can result in bankruptcy.
3 Return On Equity ROE .
eturn on equit.
measuring a company's profitability from the shareholders' perspective, that is, how much profit is earned from each unit of equity The higher the ROE, the more efficiently the company uses the shareholders' capital to generate profits, which can increase the attractiveness of the stock in the eyes of investors.
(Sapitri, 2.
4 Debt To Asset Ratio Debt to Asset Ratio (DAR) is a comparison between the company's total debt and the company's total assets.
DAR serves as a proxy for a debt covenant, which is a prediction that aims to increase profit and assets in order to reduce the cost of renegotiating contracts on debt when the company decides to terminate its debt (Ramawati & Widyowati, 2.
5 Price Book Value According to (Dera et al.
, 2.
Price Book Value (PBV) aims to illustrate how the market performance and company prospects compare with its book value, thus attracting investors.
6 Framework of Thought Gambar 2.
6 Framework of Thought
RESEARCH METHODOLOGY
The research method used in this study is quantitative data.
The data source for this research is secondary data, which is data not obtained directly from the source or through intermediary media.
The data sources in this study are obtained from the official website of the Indonesia Stock Exchange (IDX) at w.
id and the respective company The population coverage itself refers to the entire object as a basis for drawing research conclusions.
Examples of populations, besides humans, include objects or other entities in nature such as plants, animals, and phenomena or events that have certain 167 | The Effect of Profitability and Leverage on Firm Value in Food & Beverage Sub-Sector Companies Listed on the Indonesia Stock Exchange (IDX) for the Period 2020Ae2024 (Sri Mulyan.
Business Management e-ISSN : 2828-8203, p-ISSN: 2828-7606 characteristics for a study (Sugiyono, 2.
The research population in this study consists of companies in the F&B subsector listed on the Indonesia Stock Exchange for the period 2020 - 2024, totaling 102 companies.
Tabel 3 Operational Variables No Variabel Variable Concept Measuremenr Scale The higher the ROE, the Ratio Profitabilitas more effectively the Return On company utilizes Equity (ROE) shareholders' capital and (Tiara Intan generates profit, which Putri et al.
, will attract investors' Leverage Debt to Asset Rastio (DAR) (Dwi et al.
DAR plays an important role in determining decisions to meet the capital needs for asset financing that will occur in the future.
Ratio Usually a tool to compare Nilai stock prices and the Perusahaan company's asset value.
(PBV)
achieving this value, the (Agrivani & company must manage Lutfi, 2.
financial aspects Ratio
Research Results 1 Deskriptive Statistic Test
Descriptive Statistics Return On Equity (ROE) Debt to Asset Ratio
(DAR)
NILAI
PERUSAHAAN
Valid N .
Minimum Maximum Mean Std.
Deviation Source: Secondary data processed with SPSS 25 The independent variable of Return On Equity (ROE) has a minimum value of 000 by PT Bisi International Tbk from 2020-2023.
PT Japfa Comfed Indonesia Tbk from 2020-2023, and PT Sawit Sumbermas Sarana Tbk from 2020-2022.
The mean value of this variable is 0.
1602, which is smaller than the standard deviation of 0.
indicating that the return on equity (ROE) variable is not quite good.
The independent variable Debt to Asset Ratio (DAR) has a minimum value of 0.
000 by PT Delta Djakarta Tbk in 2024, which means that PT Delta Djakarta has a very small total debt or the smallest among other companies, and the maximum DAR value of 1.
000 by PT Central Protein Prima Tbk in 2024, indicating that PT Central Protein Prima Tbk has the largest total debt among other companies.
The mean value of this variable is 0.
which is higher than the standard deviation of 0.
19898, indicating that the debt to equity ratio (DER) is quite good and can be interpreted that the performance among companies 168 | The Effect of Profitability and Leverage on Firm Value in Food & Beverage Sub-Sector Companies Listed on the Indonesia Stock Exchange (IDX) for the Period 2020Ae2024 (Sri Mulyan.
Business Management e-ISSN : 2828-8203, p-ISSN: 2828-7606 is relatively consistent and looks good.
The dependent variable.
Company Value, calculated using PBV .
rice to book valu.
, has a minimum value of 0.
000 for PT Pratama Abdi Nusa Industri Tbk in 2022, which indicates that the stock price of PT Pratama Abdi Nusa Industri Tbk is low, suggesting that there may be no investment opportunities in the company.
The maximum value is obtained by PT Nippon Indosari Corpindo Tbk at 2857.
60 in 2021.
The mean is 64.
1300, and the standard deviation is higher than the mean at 344.
17813, which can be interpreted as the data being highly variable and widely spread.
2 Normality Test One-Sample Kolmogorov-Smirnov Test Unstandardized Residual Normal Parametersa,b Mean Std.
Deviation Most Extreme Differences Absolute Positive Negative Test Statistic Asymp.
Sig.
-taile.
Test distribution is Normal.
Calculated from data.
Lilliefors Significance Correction.
Source: Secondary data processed with SPSS 25 The number of samples in the data is 145 with a KolmogorovAeSmirnov value of The KolmogorovAeSmirnov value is greater than 0.
07 > 0.
, which can be interpreted as normally distributed.
3 Heteroskedastisitas Test Coefficientsa Standardized Unstandardized Coefficients Coefficients Model Std.
Error (Constan.
LNX1 Beta Sig.
Dependent Variable: Y Source: Secondary data processed with SPSS 25 Based on Table 4.
5 above, after performing data transformation, all variables show a significance value > 0.
This means that none of the variables above exhibit signs of heteroscedasticity.
4 Multikolinearitas Test 169 | The Effect of Profitability and Leverage on Firm Value in Food & Beverage Sub-Sector Companies Listed on the Indonesia Stock Exchange (IDX) for the Period 2020Ae2024 (Sri Mulyan.
Business Management e-ISSN : 2828-8203, p-ISSN: 2828-7606
Coefficientsa
Collinearity Statistics Model
Tolerance VIF
ROE
DAR
(Constan.
Dependent Variable: NILAI PERUSAHAAN Source: Secondary data processed with SPSS 25 Based on Table 4.
4, it is known that the VIF values of variable X1 and variable X1 058 < 10 and the tolerance value is 0.
945 > 0.
1, so the data does not experience 5 Autokorelasi Test Model Summaryb Model R R Square Adjusted Square R Std.
Error of the DurbinEstimate Watson Predictors: (Constan.
DAR.
ROE Dependent Variable: Nilai Perusahaan Source: Secondary data processed with SPSS 25 The Durbin-Watson value is 2.
066, indicating that there is no autocorrelation in the regression model according to this criterion.
The decision-making rule is -2 < DW < 2 (-2 < 2.
066 < .
6 Analisis Regresi Linier Test Coefficientsa Standardized Unstandardized Coefficients Coefficients Model Std.
Error (Constan.
ROE
DAR
Beta Sig.
Dependent Variable: Nilai Perusahaan Source: Secondary data processed with SPSS 25 From the table above, it shows the multiple regression equation obtained as follows:
Company Value(Y) = -35.
206 (X.
038(X.
From the results of the multiple linear regression equation above, it can be interpreted that:
If the constant is -35.
798, if there are no variables of Return On Equity (ROE) and Debt to Asset Ratio (DAR) or their values are zero, then the Company Value is 35.
The regression coefficient for the Return On Equity (ROE) variable is -1.
206 with a negative direction, which means that every increase of 1 unit in Return On Equity (ROE) will decrease the Company Value by 1.
Return On Equity (ROE) does not affect the Company Value.
The regression coefficient for the Debt to Asset Ratio (DAR) variable is 3.
038 with a positive direction, meaning that every 170 | The Effect of Profitability and Leverage on Firm Value in Food & Beverage Sub-Sector Companies Listed on the Indonesia Stock Exchange (IDX) for the Period 2020Ae2024 (Sri Mulyan.
Business Management e-ISSN : 2828-8203, p-ISSN: 2828-7606 increase of 1 unit in Debt to Asset Ratio (DAR) can increase the Company Value 7 Statistik T Test Coefficientsa Standardized Unstandardized Coefficients Coefficients Model Std.
Error (Constan.
ROE
DAR
Beta Sig.
Dependent Variable: Nilai Perusahaan Source: Secondary data processed with SPSS 25 .
The Influence of Return On Equity (X.
on Company Value (Y) Based on table 4.
8, it shows that the calculated t-value for X1 is -0.
This means that the calculated t-value is smaller than the t-table value (-0.
737 < 1.
Therefore, the hypothesis stating that Return On Equity affects Company Value is .
The Effect of Debt to Asset Ratio (X.
on FirmValue (Y) Based on Table 4.
8, it shows that the calculated t value for X2 is 2.
This means the calculated t value is greater than the t table value .
010 > 1.
Thus, the hypothesis stating that the Debt to Asset Ratio affects Firm Value is accepted.
8 Statistik F Test ANOVAa Model Sum of Squares Mean Square Sig.
Regression Residual Total Dependent Variable: LN_Y Predictors: (Constan.
LN_X2.
LN_X1 Source: Secondary data processed with SPSS 25 With a 95% confidence level, df 1 .
umber of variables -.
= 2, and df 2 .
= 143, the F table value obtained is 3.
The F-test results above show that the calculated F value of 4.
615 > F table 3.
06 or p-value < .
011 < 0.
, thus Ho is rejected, meaning that together the variables Return On Equity and Debt to Asset Ratio have a significant effect on Firm Value.
9 R2 Test Model Summary Model R Adjusted R R Square Square Std.
Error of the Estimate Predictors: (Constan.
DAR.
ROE Source: Secondary data processed with SPSS 25 The R value is 0.
168, the R Square is 0.
028, and the Adjusted R Square is 0.
This means that 1.
5% of Tax Avoidance is influenced by the two independent variables, 171 | The Effect of Profitability and Leverage on Firm Value in Food & Beverage Sub-Sector Companies Listed on the Indonesia Stock Exchange (IDX) for the Period 2020Ae2024 (Sri Mulyan.
Business Management e-ISSN : 2828-8203, p-ISSN: 2828-7606 namely Return On Assets and Debt To Equity Ratio.
Meanwhile, the remaining 98.
is influenced by other factors outside of the two independent variables in this study.
Conclusion Based on the results of data analysis and discussion regarding Return on Equity (ROE) and Debt to Asset Ratio (DAR) on Firm Value in the Food & Beverage sub-sector companies listed on the Indonesia Stock Exchange (IDX) for the period 2020Ae2024, the following conclusions can be drawn:
The test results for the profitability variable Return on Equity (ROE) show a t-value of 737 and a significance value of 0.
This means the t-value is smaller than the ttable (-0.
737 < 1.
and the significance value is 0.
463 < 0.
Therefore, it can be concluded that Return on Equity does not affect Firm Value (PBV).
This finding is consistent with the study by Agrivani & Lutfi .
, which stated that Return on Equity has no effect on Firm Value (PBV).
However, it differs from the study by Mohammad et al.
, which found that Return on Equity does affect Firm Value (PBV).
The results of this study indicate that Return on Equity cannot influence Firm Value (PBV).
It also shows that factors beyond profitability are more dominant in determining Firm Value.
Hence, some investors tend to consider aspects such as growth, financial condition, and stability of the company.
The test results for the leverage variable Debt to Asset Ratio (DAR) show a t-value of 010 and a significance value of 0.
This means the t-value is greater than the t-table .
010 > 1.
and the significance value is 0.
046 < 0.
Therefore, it can be concluded that Debt to Asset Ratio (DAR) has a significant effect on Firm Value (PBV).
The simultaneous test results for Return on Equity (ROE) and Debt to Asset Ratio (DAR) show an F-value of 4.
615 and a significance value of 0.
This means the Fvalue .
615 > 3.
and the significance value .
011 < 0.
indicate that Return on Equity and Debt to Asset Ratio jointly have a significant effect on Firm Value.
These findings reflect that companies are able to generate profits from the capital already owned by shareholders.
BIBLIOGRAPHY