Corporate resilience and firm value drivers during the Covid-19 pandemic

Stock investment remains a prominent choice for investors, emphasizing the evaluation of a company's intrinsic value and key determinants before making investment decisions. This study investigates the internal and external factors influencing firm value during the COVID-19 pandemic (2019–2021). Internal factors include liquidity and funding decisions, while external factors comprise exchange rates, interest rates, and the broader impact of the pandemic. Using a purposive sampling technique, quantitative data were collected from 324 companies listed on the Indonesia Stock Exchange. Multiple linear regression analysis reveals that funding decisions, as measured by the Debt-to-Equity Ratio (DER), and exchange rates have a significant impact on firm value. In contrast, liquidity, interest rates, and the COVID-19 pandemic did not show a substantial effect. Sectoral analysis indicates that the Consumer Cyclicals and Transportation sectors were the most affected by exchange rates and interest rates. The Energy sector demonstrated greater sensitivity to liquidity, whereas the Consumer Non-Cyclicals sector was more influenced by funding decisions. Additionally, the Industrial and Consumer Cyclicals sectors experienced a more pronounced impact from the pandemic. These findings contribute to a deeper understanding of corporate sustainability and competitiveness amid global uncertainty, offering valuable insights for investors and policymakers in making informed decisions.