The relationship between leverage and company value: an approach using industry effect resolution

  • Yusufi Arif Mustafa Universitas Tanri Abeng, Jakarta, Indonesia https://orcid.org/0009-0003-3651-6965
  • Fahri Haikal Universitas Tanri Abeng, Jakarta, Indonesia
  • Aden Apandi Sekolah Tinggi Ilmu Ekonomi Indonesia Jakarta, Jakarta, Indonesia
DOI: https://doi.org/10.36407/jrmb.v10i1.1751

Keywords: Leverage, Firm Value, Tobin’s Q, Industry Effect Resolution, Growth Opportunities

Abstract

This study aims to analyze the effect of leverage on firm value by incorporating industry effect resolution. The sample consists of non-financial companies listed on the Indonesia Stock Exchange (IDX) during the 2019–2023 period. Using panel data regression with fixed-effects and random-effects models, the research compares the impact of leverage on firm value before and after accounting for industry-specific characteristics. The results indicate that leverage has a positive impact on firm value, both before and after controlling for the industry effect.

Published
2025-10-02
How to Cite
Mustafa, Y. A., Haikal, F., & Apandi, A. (2025). The relationship between leverage and company value: an approach using industry effect resolution. Jurnal Riset Manajemen Dan Bisnis, 10(1), 1-10. https://doi.org/10.36407/jrmb.v10i1.1751
Issue
Vol 10 No 1 (2025)
Section
Articles

Copyright (c) 2025 Yusufi Arif Mustafa, Fahri Haikal, Aden Apandi

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