FINANCIAL LIQUIDITY AND INVESTMENT OPPORTUNITIES INFLUENCING THE FIRM VALUE OF COMPANIES LISTED ON THE MARKET FOR ALTERNATIVE INVESTMENT
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Introduction: Capital markets play a crucial role as a mechanism for driving a country’s economic system. Investors who develop clear investment plans and select investment strategies that align with their objectives are more likely to make systematic investment decisions. In this regard, firm valuation serves as an important tool that enables investors to make rational decisions and achieve appropriate returns. Objective: This study aims to examine and analyze the influence of financial liquidity and investment opportunities on firm value among companies listed on the Market for Alternative Investment. Method: This study employs data covering the period from 2022 to 2024. The sample consists of 333 firm-year observations. Inferential statistics and multiple regression analysis were applied to test the research hypotheses. Results: The findings indicate that financial liquidity, measured by the current ratio and cash holdings, is positively associated with firm value, measured by Tobin’s Q. In contrast, the quick ratio shows a negative relationship with firm value. In addition, investment opportunities, measured by financial flexibility and firm growth, are positively associated with firm value. However, the dividend yield ratio does not exhibit a statistically significant relationship with firm value. Conclusion: The findings suggest that financial liquidity and investment opportunities of companies listed on the Market for Alternative Investment represent important factors reflecting a firm’s potential for expansion in terms of assets, revenues, and profitability. Continuous corporate growth tends to increase investors’ expectations of future returns, indicating stronger competitiveness and enhancing investor confidence. Such confidence attracts investors and increases demand for the firm’s securities, ultimately leading to higher stock prices and firm value.
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