Investment Opportunity Set (IOS) and Working Capital Turnover (WTO) on Profitability and Firm Value

Abstract

Various goals that a company has in maintaining its share price is to keep maximizing the value of the company. There many factors that can affect a company's value, among others, investment opportunity set, working capital turnover , profitability. Based on this introduction, this study has several objectives in conducting this research, namely, to examine the effect of the Investment Opportunity Set (IOS) and Working Capital Turnover (WTO) on profitability ratios as well as on firm value. In this study, manufacturing companies listed on the Indonesia Stock Exchange for the 2015-2020 period were used. In taking the sample, purposive sampling technique was used, after using this technique, it was found that 50 samples were used in this study. Data analysis in this study used partial least square data analysis techniques. After analyzing the data, the research results obtained, firstly IOS has a significant positive effect on profitability and firm value, WCTO has a direct effect on profitability while WCTO has no effect on firm value. This study also has an implication, the implication is that excessive working capital will reduce profitability. The existence of a good and appropriate strategy will continue to be needed to obtain the right working capital.

Pengaruh cash holding, foreign ownership, struktur modal, dan perputaran modal kerja terhadap nilai perusahaan

“…Hasil penelitian ini sependapat dengan hasil penelitian terdahulu yang menyatakan bahwa perputaran modal kerja tidak berpengaruh terhadap nilai perusahaan yaitu pada penelitian Basri & Sasior (2021); Ramadhani et al (2021); dan Telaumbanua et al (2021).…”