Proceedings of the Conference on SDGs Transformation through the Creative Economy: Encouraging Innovation and Sustainability (TCEEIS 2023)

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Grouping Manufacturing Companies Based on Factors Affecting Firm Value Using C-Means Clustering

Authors
Marita Qori’atunnadyah1, *, Fetri Setyo Liyundira2, Neny Tri Indrianasari3
1Department of Informatics, Institut Teknologi dan Bisnis Widya Gama Lumajang, Lumajang, Jawa Timur, Indonesia
2Department of Accounting, Institut Teknologi dan Bisnis Widya Gama Lumajang, Lumajang, Jawa Timur, Indonesia
3Department of Accounting, Institut Teknologi dan Bisnis Widya Gama Lumajang, Lumajang, Jawa Timur, Indonesia
*Corresponding author. Email: maritaqori@gmail.com
Corresponding Author
Marita Qori’atunnadyah
Available Online 11 January 2024.
DOI
10.2991/978-94-6463-346-7_6How to use a DOI?
Keywords
clustering; c-means; firm value; manufacturing
Abstract

Every company aims to maximize firm value, a crucial goal in various industries. Key determinants of firm value include firm size, sales growth, Debt to Equity Ratio (DER), business age, Return On Assets (ROA), and total asset turnover. Understanding the interplay of these variables in shaping firm value is of utmost importance. This study delves into the 2021 firm value of manufacturing companies, utilizing the c-means clustering method to group them based on these value-influencing factors. The c-means method is a potent tool for data clustering, enabling the identification of meaningful patterns within datasets. Analysis reveals that configuring the c-means method with two distinct groups is the optimal approach for clustering these manufacturing companies. Group 1 represents a moderate firm value, while Group 2 boasts a significantly higher firm value. The results have multifaceted implications. Categorizing manufacturing companies into these two groups based on performance and value-affecting factors provides valuable insights for businesses and stakeholders. This information informs strategic decisions and interventions aimed at enhancing firm value, fostering growth, and ensuring long-term sustainability.

Copyright
© 2023 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the Conference on SDGs Transformation through the Creative Economy: Encouraging Innovation and Sustainability (TCEEIS 2023)
Series
Advances in Economics, Business and Management Research
Publication Date
11 January 2024
ISBN
10.2991/978-94-6463-346-7_6
ISSN
2352-5428
DOI
10.2991/978-94-6463-346-7_6How to use a DOI?
Copyright
© 2023 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Marita Qori’atunnadyah
AU  - Fetri Setyo Liyundira
AU  - Neny Tri Indrianasari
PY  - 2024
DA  - 2024/01/11
TI  - Grouping Manufacturing Companies Based on Factors Affecting Firm Value Using C-Means Clustering
BT  - Proceedings of the Conference on SDGs Transformation through the Creative Economy: Encouraging Innovation and Sustainability (TCEEIS 2023)
PB  - Atlantis Press
SP  - 28
EP  - 31
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-346-7_6
DO  - 10.2991/978-94-6463-346-7_6
ID  - Qori’atunnadyah2024
ER  -