The Effect of Company Growth and Inflation on Company Valuation
Abstract
The purpose of this research is to examine how corporate expansion and inflation affect the worth of companies in the resort, cruise, and hospitality industries that are listed on the Indonesia Stock Exchange (IDX). The study makes use of secondary data that was obtained from these firms' 2018–2022 annual financial reports. By employing a purposive sampling technique, 15 companies were selected, resulting in 75 observations aligned with the study's objectives. Panel data analysis techniques were used to examine the data. The results show that although inflation has a positive and considerable impact on company value, sales growth has no discernible effect. Second, the joint effect of sales growth and inflation accounts for most of the observed value growth in firms. This has important implications for company management, as they need to leverage firm value for competitive advantages in rapidly changing market conditions.
References
Al Farid, F., & Ramadhan, Y. (2022). Kinerja Keuangan Sebagai Pemediasi: Likuiditas, Leverage, Corporate Tax, Nilai Perusahaan. Journal of Syntax Literate, 7(5).
Allioui, H., & Mourdi, Y. (2023). Exploring the full potentials of IoT for better financial growth and stability: A comprehensive survey. Sensors, 23(19), 8015. https://doi.org/10.3390/s23198015
Anas, T., Hill, H., Narjoko, D., & Putra, C. T. (2022). The Indonesian economy in turbulent times. Bulletin of Indonesian Economic Studies, 58(3), 241-271. https://doi.org/10.1080/00074918.2022.2133344
Anttiroiko, A. V. (2021). Successful government responses to the pandemic: Contextualizing national and urban responses to the COVID-19 outbreak in east and west. International Journal of E-Planning Research (IJEPR), 10(2), 1-17. http://dx.doi.org/10.4018/IJEPR.20210401.oa1
Banbury, C. M., & Mitchell, W. (1995). The effect of introducing important incremental innovations on market share and business survival. Strategic management journal, 16(S1), 161-182. https://doi.org/10.1002/smj.4250160922
Billah, S. M., & Adnan, N. (2024). Navigating environmental concerns and geopolitical risks: A study on green sukuk and Islamic equities amid climate crisis and the Russia-Ukraine conflict. Energy Strategy Reviews, 53, 101372. https://doi.org/10.1016/j.esr.2024.101372
Brigham, E. F., & Houston, J. F. (2019). Fundamentals of financial management. Cengage Learning.
Cahyani, Y., & Sinaga, N. N. (2024). Strategi Peningkatan Nilai Perusahaan: Peran Struktur Modal, Pertumbuhan, dan Kepemilikan Institusional. Jurnal Mahasiswa Ekonomi & Bisnis. https://doi.org/10.37481/jmeb.v4i2.835
Chaniago, H. (2023). Investigation of entrepreneurial leadership and digital transformation: Achieving business success in uncertain economic conditions. Journal of technology management & innovation, 18(2), 18-27. https://doi.org/10.4067/S0718-27242023000200018
Coccia, M. (2021). Pandemic prevention: lessons from COVID-19. Encyclopedia, 1(2), 36. https://doi.org/10.3390/encyclopedia1020036
Edelstein, P., & Kilian, L. (2009). How sensitive are consumer expenditures to retail energy prices?. Journal of Monetary Economics, 56(6), 766-779. https://doi.org/10.1016/j.jmoneco.2009.06.001
Fajriah, A. L., Idris, A., & Nadhiroh, U. (2022). Pengaruh Pertumbuhan Penjualan, Pertumbuhan Perusahaan, Dan Ukuran Perusahaan Terhadap Nilai Perusahaan. Jurnal Ilmiah Manajemen Dan Bisnis, 7(1), 1–12. https://doi.org/10.38043/jimb.v7i1.3218
Fuadi, A., Yulianti, V., Noor, A. F., & Putri, T. A. (2022). Pengaruh Risiko Bisnis, Pertumbuhan Penjualan dan Umur Perusahaan Terhadap Nilai Perusahaan. ASSET: Jurnal Manajemen Dan Bisnis, 5(2). http://dx.doi.org/10.24269/asset.v5i2.6154
Geriadi, M. A. D., & Wiksuana, I. G. B. (2017). Pengaruh inflasi terhadap return saham pada perusahaan properti dan real estate yang terdaftar di bursa efek indonesia (risiko sistematis dan profitabilitas sebagai variabel mediasi). E-Jurnal Ekonomi Dan Bisnis Universitas Udayana, 9(1), 3250-3435. https://doi.org/10.24843/EEB.2017.v06.i09.p10
Gong, B., Zhang, S., Yuan, L., & Chen, K. Z. (2020). A balance act: minimizing economic loss while controlling novel coronavirus pneumonia. Journal of Chinese Governance, 5(2), 249-268. https://doi.org/10.1080/23812346.2020.1741940
Gosling, T., & MacNeil, I. (2023). Can investors save the planet? NZAMI and fiduciary duty. Capital Markets Law Journal, 18(2), 172-193. https://doi.org/10.1093/cmlj/kmad002
Halimatussadiah, A., Cesarina, A., Siregar, A. A., Hanum, C., Wisana, D., Rahardi, F., ... & Sofiyandi, Y. (2020). Thinking ahead: Indonesia’s agenda on sustainable recovery from COVID-19 pandemic. Institute for Economic and Social Research, LPEM FEB UI.
Hartini, E. F., & Badriyah, S. (2020). Kemampulabaan Perusahaan Berdasarkan Efisiensi Modal Kerja, Pertumbuhan Penjualan, Dan Ukuran Pada Perusahaan “Makanan Dan Minuman.” Jurnal Pengembangan Wiraswasta, 22(01), 11–20. http://dx.doi.org/10.33370/jpw.v22i01.381
Johan, S., & Herbani, L. (2018). Metode Valuasi Manakah Yang Lebih Tepat Untuk Merger Dan Akuisisi? Jurnal Muara Ilmu Ekonomi Dan Bisnis, 2(1), 64–71. http://dx.doi.org/10.24912/jmieb.v2i1.1659
Junaidi, M. J., & Salim, S. (2021). Dampak pandemi COVID-19 terhadap kinerja perusahaan di moderasi pendapatan. Jurnal Ekonomi, 26(11), 208–226. https://doi.org/10.24912/je.v26i11.774
Kapil, S., & Mishra, R. (2019). Corporate governance and firm performance in emerging markets: Evidence from India. Theoretical Economics Letters, 9(6), 2033–2069. https://doi.org/10.4236/tel.2019.96129
Kasmir, D. (2018). Analisis Laporan Keuangan. PT RajaGrafindo Persada. Analisis Laporan Keuangan. PT. Rajagrafindo Persada, 7.
Lathief, J. T. A., Kumaravel, S. C., Velnadar, R., Vijayan, R. V., & Parayitam, S. (2024). Quantifying risk in investment decision-making. Journal of Risk and Financial Management, 17(2), 82. https://doi.org/10.3390/jrfm17020082
Nuraini, A., & Cahyadi, I. P. (2025). Influence good corporate governance, capital structure, and company size on financial performance of oil and gas companies. Jurnal Ilmiah Akuntansi Kesatuan, 13(1), 43-52. https://doi.org/10.37641/jiakes.v13i1.3109
Nuryani, S. D., Wijayanti, A., & Masitoh, E. (2021). Pengaruh Internal dan Eksternal Perusahaan terhadap Nilai Perusahaan pada Perusahaan Properti dan Real Estate. Ekonomis: Journal of Economics and Business, 5(1), 191–196. http://dx.doi.org/10.33087/ekonomis.v5i1.199
Okun, A. M., Fellner, W., & Wachter, M. (1975). Inflation: Its mechanics and welfare costs. Brookings Papers on Economic Activity, 1975(2), 351-401. https://doi.org/10.2307/2534106
Pandiangan, S. M. T., Oktafiana, F., Panjaitan, S. R., & Shifa, M. (2022). Analysis of public ownership and management ownership on the implementation of the triple bottom line in the plantation sector listed on the Indonesia Stock Exchange. Budapest International Research and Critics Institute-Journal (BIRCI-Journal), 5(1), 349-3497. https://doi.org/10.33258/birci.v5i1.4016
Pangalos, G. (2023). Financing for a sustainable dry bulk shipping industry: what are the potential routes for financial innovation in sustainability and alternative energy in the dry bulk shipping industry?. Journal of Risk and Financial Management, 16(2), 101. https://doi.org/10.3390/jrfm16020101
Prasitadewi, M. S., & Putra, I. (2020). Pengaruh faktor internal dan faktor eksternal terhadap nilai perusahaan. E-Jurnal Akuntansi, 30(6), 1397–1413. http://dx.doi.org/10.24843/EJA.2020.v30.i06.p05
Purba, W., Nainggolan, P., & Panjaitan, P. D. (2022). Analisis Pengaruh Inflasi dan Pertumbuhan Ekonomi Terhadap Pengangguran di Provinsi Sumatera Utara. Jurnal Ekuilnomi, 4(1), 62–74. https://doi.org/10.36985/g9awzh90
Retno, A. P., & Hariyanto, W. (2024). Kinerja Perusahaan Dongkrak Nilai Perusahaan di Tengah Inflasi Global. Jurnal Pemberdayaan Ekonomi Dan Masyarakat, 1(3), 13. https://doi.org/10.47134/jpem.v1i3.277
Rosyadi, S., Sabiq, A., Ahmad, A. A., & Nuryanti. (2022). The Indonesian government capacity in responding to the COVID-19 impacts on the creative economy sector. Sage Open, 12(2), 21582440221105820. http://dx.doi.org/10.1177/21582440221105820
Rukmana, A. Y., Meltareza, R., Harto, B., Komalasari, O., & Harnani, N. (2023). Optimizing the role of business incubators in higher education: A review of supporting factors and barriers. West Science Business and Management, 1(03), 169-175. https://doi.org/10.58812/wsbm.v1i03.96
Salju, S., Sapar, S., & Asrianti, A. (2022). The Influence of Ownership Structure, Capital Structure, Investment Opportunities on Dividend Policy and Company Value. Jurnal Mantik, 6(1), 89–101.
Santoso, A. (2022). Telisik Faktor Penentu Penurun Inflasi dan Dampaknya pada Peningkatan Pertumbuhan Ekonomi. Government and Statistics, 1(1), 53–63. https://doi.org/10.21787/govstat.1.2022.53-63
Sihaloho, J., & PS, A. R. (2021). the Influence of Price Earning Ratio (Per), Earning Per Share (Eps), Price To Book Value (Pbv) on Stock Prices and Firm Size As Mediators in Food and Beverage Sub-Sector Manufacturing Companies Listed on the Indonesia Stock Exchange 2015-2020. International Journal of Economics, Business and Accounting Research (IJEBAR), 5(4). https://doi.org/10.29040/ijebar.v5i4.3951
Ssenyonga, M. (2021). Imperatives for post COVID-19 recovery of Indonesia’s education, labor, and SME sectors. Cogent Economics & Finance, 9(1), 1911439. https://doi.org/10.1080/23322039.2021.1911439
Surjanto, D., & Sugiharto, T. (2021). LQ45 stock price valuation analysis using price to book value (PBV) and price earning ratio (PER) variables from 2016-2020. Enrichment: Journal of Management, 12(1), 205-211. https://doi.org/10.35335/enrichment.v12i1.192
Susanto, S. (2017). Pengaruh inflasi, tingkat suku bunga, dan nilai tukar terhadap pertumbuhan ekonomi Indonesia. JEBI| Jurnal Ekonomi Bisnis Indonesia, 12(1), 52–68. https://doi.org/10.36310/jebi.v12i1.27
Widiastuti, T., Auwalin, I., Rani, L. N., & Ubaidillah Al Mustofa, M. (2021). A mediating effect of business growth on zakat empowerment program and mustahiq’s welfare. Cogent Business & Management, 8(1), 1882039. https://doi.org/10.1080/23311975.2021.1882039
Zayed, N. M., Mohamed, I. S., Islam, K. M. A., Perevozova, I., Nitsenko, V., & Morozova, O. (2022). Factors influencing the financial situation and management of small and medium enterprises. Journal of Risk and Financial Management, 15(12), 554. https://doi.org/10.3390/jrfm15120554
Zuhro, L., & Irsad, M. (2022). Pengaruh Rasio Profitabilitas, Leverage, Likuiditas, Inflasi dan Suku Bunga terhadap Nilai Perusahaan pada Perusahaan Properti, Real Estate dan Konstruksi Yang Terdaftar di Bursa Efek Indonesia pada Tahun 2016-2020. YUME: Journal of Management, 5(1), 431-432. https://doi.org/10.37531/yum.v5i1.1533
Copyright (c) 2025 Journal La Bisecoman
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
