Proceedings of the 1st International Conference on Social Environment Diversity (ICOSEND 2024)

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Funding Source Choices and Investment Decisions at the Enterprise Value Level: Empirical Study on Islamic Companies in Indonesia

Authors
Riskin Hidayat1, *, Sri Hermuningsih1, Adi Wijaya1, Renyarosari Bano Seran1, Atikah Raid Khorunisa1
1Department Master of Management, Economics Faculty, Universitas Sarjanawiyata Tamansiswa, Jl. Kusumanegara No. 157, Yogyakarta, Indonesia
*Corresponding author. Email: riskin.hidayat@ustjogja.ac.id
Corresponding Author
Riskin Hidayat
Available Online 28 February 2025.
DOI
10.2991/978-2-38476-366-5_4How to use a DOI?
Keywords
liquidity; debt policy; investment decision; low and high firm value
Abstract

Our research analyzes how liquidity, debt policy and investment decisions affect companies with high and low firm value. The sample of this research is companies included in the Jakarta Islamic Index on the IDX with a total sample of 17 companies and a total of 170 observations. The results showed a significant positive effect of liquidity on firm value in the sample as a whole and in companies with low value, while liquidity has a negative and insignificant effect on companies with high value. This suggests that low value firms tend to use liquidity or internal funding to increase their value. Research results also show that debt has an insignificant positive effect on firm value in all samples and debt has an insignificant negative effect on low value firms. On the other hand, debt has a significant positive effect on low-value firms. This indicates that companies with high value tend to use debt to increase firm value. In another study, this research also found that investment decision has a significant positive effect on firm value.

Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 1st International Conference on Social Environment Diversity (ICOSEND 2024)
Series
Advances in Social Science, Education and Humanities Research
Publication Date
28 February 2025
ISBN
978-2-38476-366-5
ISSN
2352-5398
DOI
10.2991/978-2-38476-366-5_4How to use a DOI?
Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Riskin Hidayat
AU  - Sri Hermuningsih
AU  - Adi Wijaya
AU  - Renyarosari Bano Seran
AU  - Atikah Raid Khorunisa
PY  - 2025
DA  - 2025/02/28
TI  - Funding Source Choices and Investment Decisions at the Enterprise Value Level: Empirical Study on Islamic Companies in Indonesia
BT  - Proceedings of the 1st International Conference on Social Environment Diversity (ICOSEND 2024)
PB  - Atlantis Press
SP  - 36
EP  - 49
SN  - 2352-5398
UR  - https://doi.org/10.2991/978-2-38476-366-5_4
DO  - 10.2991/978-2-38476-366-5_4
ID  - Hidayat2025
ER  -