The Influence of Company Size and Investment Decisions on Company Value at PT Industri Jamu and Farmasi Sido Muncul Tbk Period 2014-2025

Abstract

This study examines the relationship between firm size, investment decisions, and firm value at PT Industri Jamu dan Farmasi Sido Muncul Tbk during 2014–2025. A quantitative approach was employed using secondary data from the company’s financial statements, annual reports, and share-price information, covering 12 annual observations. Firm size was measured using the natural logarithm of total assets, investment decisions using asset growth, and firm value using the Price-to-Book Value (PBV) ratio. The data were analyzed using descriptive statistics, classical assumption tests, multiple linear regression, t-tests, an F-test, and the coefficient of determination. The results indicate that firm size was positively and significantly associated with PBV ((t = 4.460), (p = 0.002)), whereas asset growth did not show a statistically significant relationship with PBV ((t = 1.074), (p = 0.311)). The simultaneous test showed that firm size and asset growth were jointly significant in the regression model ((F = 10.881), (p = 0.004)). The model yielded an (R^2) of 0.707 and an adjusted (R^2) of 0.642, indicating that the model accounted for 70.7% of the variation in PBV in the observed data before adjustment for the number of predictors. These findings should be interpreted cautiously because the analysis is based on 12 annual observations from a single company and does not establish causal relationships.