THE EFFECT OF DEBT-TO-ASSET RATIO, STOCK PRICE, AND RETURN OF EQUITY ON FIRM VALUE WITH SIZE AS VARIABLE MODERATION (STUDY ON FOOD AND BEVERAGES COMPANIES 2017-2021)

Linda Ayu Oktoriza, Diana Puspitasari

Abstract

This research aims to explain the effect of debt-to-asset ratio, stock price, and return of equity on firm value with size as variable moderation. The object study is a company food and beverages sector, that has been registered on the IDX for the 2017-2021 period.  This study wearing Multiple Regression Analysis and Moderated Regression Analysis using the SPSS program for processing the data. The results of the study prove that DER, Stock Price, ROE, and Size have an effect on Firm Value. Variables Stock price, ROE, and firm size have a positive effect on firm value. While DER has a negative influence on firm value. Firm size can moderate the DER relationship to Firm Value but cannot moderate the Share Price to Firm Value relationship.

Keywords

DER, Stock Price, ROE, Size, PBV

Full Text:

PDF

References

Fekadu Agmas, W. (2020) ‘Impacts of capital structure: profitability of construction companies in Ethiopia’, Journal of Financial Management of Property and Construction, 25(3), pp. 371–386. Doi: 10.1108/JFMPC-08-2019-0072.

Ispriyahadi, H. and Abdulah, B. (2021) ‘Analysis of The Effect of Profitability, Leverage and Firm Size on Firm Value’, Journal of Business, Management, and Accounting, 3(2), pp. 64–80.

Jihadi, M. et al. (2021) ‘The Effect of Liquidity, Leverage, and Profitability on Firm Value: Empirical Evidence from Indonesia’, Journal of Asian Finance, Economics, and Business, 8(3), pp. 423–431. doi: 10.13106/jafeb.2021.vol8.no3.0423.

Kalash, I. (2021) ‘The impact of environmental performance on capital structure and firm performance: the case of Turkey, Society and Business Review, 16(2), pp. 255–277. Doi: 10.1108/SBR-11-2020-0138.

Laguir, I. et al. (2018) ‘Reversing the business rationale for environmental commitment in banking: Does financial performance lead to higher environmental performance?’, Management Decision, 56(2), pp. 358–375. Doi: 10.1108/MD-12-2016-0890.

Luckieta, M., Amran, A. and Alamsyah, D. P. (2020) ‘The Fundamental Analysis of Stock Prices’, TEST : Engineering & Management, 83(September), pp. 28720–28729. Available at: https://www.researchgate.net/publication/344237173.

Mukhtasyam, N. U. Z., Pagalung, G. and Arifuddin (2020) ‘Effect of Profitability, Liquidity, and Solvability on Share Prices with Earning Per Share (EPS) As a Moderating Variables’, International Journal of Innovative Science and Research Technology, 5(8), pp. 1571–1577. Available at: www.ijisrt.com.

Pascareno, B. E. (2016) ‘Effect of Financial Performance on Company’S Value Moderated By Dividend Policy (Case Study: Insurance Company and Banking Company That Listed in Indonesia Stock Exchange)’, Jurnal Ekonomi Bisnis, 21(1), pp. 9–20.

Pohan, S. H. (2020) ‘Effect of Firm Size and Debt To Asset Ratio on Earning Per Share With Profitability As a Moderating Variables in Property and Real Estate Companies Listen on the Idx’, Accounting and Business Journal, 2(1), pp. 76–89.

Rachmat, R. A. H. et al. (2019) ‘Capital structure, profitability, and firm value: An empirical analysis’, International Journal of Innovation, Creativity and, Change, 6(6), pp. 182–192.

Rahman, M. M. and Howlader, M. S. (2022) ‘The impact of research and development expenditure on firm performance and firm value: evidence from a South Asian emerging economy’, Journal of Applied Accounting Research, 23(4), pp. 825–845. doi: 10.1108/JAAR-07-2021-0196.

Rusdiyanto et al. (2020) ‘The effect of earning per share, debt to equity ratio and return on assets on stock prices: Case study Indonesian’, Academy of Entrepreneurship Journal, 26(2), pp. 1–10.

Sukma, R. P., Nurtina, A. R. and MH Nainggolan, B. (2022) ‘Effect of Debt Ratio, Long-Term Debt To Equity, and Firm Size on Profitability’, Journal of Management and Leadership, 5(1), pp. 27–37. doi: 10.47970/jml.v5i1.302.

Surasmi, I. A., Putra, I. B. U. and Yasa, I. M. J. (2022) ‘Moderating Effect of Capital Structure on the Effect of Sales Growth on the Value of Manufacturing Companies Listed on the Indonesia Stock Exchange’, Jurnal Ekonomi & Bisnis JAGADITHA, 9(1), pp. 1–6. doi: 10.22225/jj.9.1.2022.1-6.

Suteja, J. et al. (2023) ‘Investment Decision and Firm Value: Moderating Effects of Corporate Social Responsibility and Profitability of Non-Financial Sector Companies on the Indonesia Stock Exchange’, Journal of Risk and Financial Management, 16(1), p. 40. doi: 10.3390/jrfm16010040.

Wiagustini, N. L. P. et al. (2017) ‘Indonesia’s capital structure: Pecking order theory or trade-off theory’, International Journal of Applied Business and Economic Research, 15(16), pp. 119–131.

Zamzamir, Z., Haron, R. and Othman, A. H. A. (2021) ‘Hedging, managerial ownership, and firm value’, Journal of Asian Business and Economic Studies, 28(4), pp. 263–280. doi: 10.1108/JABES-08-2020-0101.

DOI: https://doi.org/10.34152/fe.18.2.129-137

Refbacks

  • There are currently no refbacks.