The Influence of Financial Performance, Capital Structure and Macroeconomic Factors on Firm’s Value – Evidence from Textile Companies at Indonesia Stock Exchange

Jubaedah, Jubaedah; Yulivan, Ivan; Hadi, Abdul Razak Abdul

doi:10.11114/afa.v2i2.1403

Cited by 11 publications

(7 citation statements)

References 44 publications

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“…According to Prihadi (2013: 192) the higher the ratio means the worse the condition of the solvency. exchange rate has no significant effect on PBV, whereas Jubaedah and Hadi (2016) stated that the exchange rate has a positive effect on PBV. Changes in exchange rates can cause changes in the price of goods, especially imported goods.…”

Section: Ho Rejected F Count> F Table (Effect) or If The Value Of F Count> From F Table The Independent Variables Simultaneously Influencmentioning

confidence: 99%

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

Salim

Wahyuni²

2020

Int. J. Eng. Tech. Mgmt. Res.

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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).

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Section: Ho Rejected F Count> F Table (Effect) or If The Value Of F Count> From F Table The Independent Variables Simultaneously Influencmentioning

confidence: 99%

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

Salim

Wahyuni²

2020

Int. J. Eng. Tech. Mgmt. Res.

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“…While the result of the research conducted by (Ifeanyi and Chukwuma, 2016) indicated that the relationship between inflation and profitability had a non-significant negative effect on firm value. But according to (Al-Sharkas, 2016), and (Jubaedah et al, 2016), stated that inflation has a positive and significant effect on firm value.…”

Section: Introductionmentioning

confidence: 99%

The Effect Of Financial Ratio On Company Value With Inflation As A Moderation Variable

Ruslim

2019

Jurnal Akuntansi

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This study empirically examines the effect of capital structure, company growth, and profitability on firm value with inflation as a moderating variable in issuers in 2012-2015. The sample of this study was 245 issuers. The research method uses the Generalized Method of Moments (GMM) method. The result of this study is indicated that partially positive and significant effect on firm value (PBV) is the capital structure variable (DAR) and profitability (ROA), while company growth (growth) partially has a negative and no significant effect on firm value. Therefore, inflation moderates the effect of the relationship of profitability on firm value. The result of Simultaneous test showed that there is a significant effect of capital structure, company growth, profitability, and inflation simultaneously on firm value. This is indicated by the result of R-squared 19.3141% which indicated that variations in company value can be explained by variable capital structure, company growth, profitability and inflation of 19.3141% and the remaining 80.6859% explained by other factors.

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“…In contrast, the agents, as managers of companies, have interests or expectations that they will get a bonus or reward for their performance in managing the company. Agency theory describes that the agency relationship of a company is a collection of contracts (nexus of contracts) between the owners of economic resources (principal), and managers (agents) who take care of the use and control of these resources ( Jensen & Meckling, 1976). A conflict resides in that agency theory predicts self-interest as the role basis for economics (Riahi-Belkaoui, 2002).…”

Section: Literature Review and Hypotheses Developmentmentioning

confidence: 99%

Financial Performance, Exchange Rate, and Firm Value: The Indonesian Public Companies Case

Setiawanta

Utomo

Ghozali

et al. 2020

OMEE

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Transactions between countries require a stable exchange rate. When the exchange rate of the country experiences uncertainty, then this will influence the company’s financial performance and even affect the company’s market value. This study aims to look for the direct influence of the company’s financial performance as an independent variable and the firm value as a dependent variable within the investor perspective, also including the exchange rate factor as a moderating variable. Investors could probably learn about information on the ups-and-downs of the Indonesian rupiah against foreign currencies before their investment decisions, even though financial performance substantially influences the company’s market value. The sample in this study was 50 companies within four years of observation. Data processing was carried out by the Eviews statistical application. The results showed that the financial performance, which is proxied by the capital structure, affects firm value, but not profitability. The impact of exchange rate moderation also occurs in the relationship of capital structure and firm value, while the moderation effect on profitability and firm value is not proven. This study provides information that exchange rates influence investment interests upon investors’ analysis of the financial performance of the capital structure, but not profitability.

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The Influence of Financial Performance, Capital Structure and Macroeconomic Factors on Firm’s Value – Evidence from Textile Companies at Indonesia Stock Exchange

Cited by 11 publications

References 44 publications

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

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

The Effect Of Financial Ratio On Company Value With Inflation As A Moderation Variable

Financial Performance, Exchange Rate, and Firm Value: The Indonesian Public Companies Case

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