The Effect of Internal, External Factors on Corporate Performance and Its Impact on Corporate Values in Indonesia Manufacturing Companies in the Automotive Sub Sector and Its Components in 2008-2017

Abstract

This study aims to find out: (1) Effect of Current Ratio (CR), Debt to Equity Ratio (DER), inflation and the IDR exchange rate on Return on Assets (ROA); (2) Effect of Current Ratio (CR), Debt to Equity Ratio (DER), inflation and the IDR exchange rate against Price to Book value (PBV); (3) Effect of Return on Assets (ROA) on Price to Book value (PBV); (4) Role of Return on Assets ROA as an intervening variable between Current Ratio (CR), Debt to Equity Ratio (DER), inflation and the IDR exchange rate with Price to Book value (PBV). The research sample is the automotive sub-sector manufacturing company and its components in the period 2008-2017 as many as 9 companies. The results of the study with panel data show that simultaneously CR, DER, inflation and the rupiah exchange rate affect ROA, partially CR and inflation have no significant effect on ROA, while DER and the IDR exchange rate have a significant effect on ROA. Simultaneously CR, DER, inflation and the IDR exchange rate affect PBV, partially CR, DER and inflation have no significant effect on PBV, while the IDR exchange rate has a significant effect on PBV. 12. The role of ROA as an intervening variable is very important in increasing the influence of CR, DER, inflation and the IDR exchange rate against Price to Book Value (PBV).

Determinants of Firm Value and Its Impact on Stock Prices (Study in Consumer Good Public Companies in Idx 2014-2018)

“…This shows that the higher the profitability, the company value will increase. The results of this study are in accordance with previous studies of Salim and Susilawati (2019), Salim and Evilin (2019) and Bambang and Rahmatika (2017). With this, hypothesis 1 (H1) is accepted.…”

Dividend Policy Sebagai Intervening Hubungan Rasio Keuangan Terhadap Firm Value Di BEI

“…Sehingga hutang merupakan tanda ataupun sinyal positif untuk meningkatkan firm value dimata investor. Selain itu, didukung oleh riset (Hertina, Hidayat & Susanti, 2019) (Salim & Wahyuni, 2020), (Naelly & Mustafa, 2020) (Dianti et al, 2020), (Widayanti & Yadnya, 2020) dan (Dwiputra & Viriany, 2020) Hal ini karena usaha harus menanggung bunga dan biaya perlunasan utang dalam proses perluasan penggunaan utang, dan dengan dmeikian keuntungan usaha digunakan untuk membayar uutang. Kewajiban perusahaan yaitu pelunasan utang dan keuntungan yang diterima berkurang.…”

Determinant Return on Assets and Its Impact on Assets Growth (Case Study of Sharia General Banks in Indonesia)

“…Company performance is the result of implementing company policies such as ROA that will be used by investors and prospective investors as a basic for their decision to invest. (Salim, et. al, 2019) Companies with high return on assets (ROA) will attract investors to invest their capital to the company because the company is considered to be more efficient in generating profits by utilizing all assets owned by the company.…”