Asset turnover and firm value in Indonesian telecommunications: Panel evidence and robustness tests in 2021-2024

Abstract

This study re-examines the association between total asset turnover and firm value in Indonesian telecommunications after accounting for the panel structure, business-model heterogeneity, leverage, outliers, and temporal ordering. The revision replaces the complete-case design with an unbalanced panel covering 20 of the 22 firms in the Indonesian telecommunications population. The primary Price-to-Book Value (PBV) panel contains 72 firm-year observations for 2021-2024; firm-years with non-positive book equity are omitted only where PBV is not economically interpretable. Pooled OLS with year and business-category effects, firm fixed effects, random effects, and a Mundlak correlated-random-effects specification are compared. HC3 inference, a firm-block bootstrap, winsorisation, lagged ratios, leave-one-firm-out tests, and alternative profitability and valuation measures are reported. The first-submission negative turnover coefficient is not robust across PBV panel specifications: the pooled HC3 estimate is b = -0.101 (p = .879), while fixed- and random-effects estimates are also imprecise. A negative association is stronger for enterprise-value-to-sales, but this does not establish that low turnover is a growth signal. The revised conclusion is therefore limited to specification-dependent conditional associations rather than causal market preferences or investment returns.