Effect of Debt to Equity Ratio and Current Ratio on Company Value with Return on Assets as Intervening Variable in Consumer Goods Industrial Companies Listed on the Indonesia Stock Exchange for the 2015–2018 Period
Journal Title: Journal of Economics, Finance and Management Studies - Year 2021, Vol 4, Issue 08
Abstract
The value of the company is an illustration of how good or bad management is in managing its wealth. An increase in the value of the company is usually marked by an increase in stock prices. The purpose of this study is to examine and analyze the effect of debt to equity ratio (DER) and current ratio (CR) on company value with return on assets (ROA) as intervening variable in Consumer Goods Industrial Companies Listed on the Indonesia Stock Exchange for the 2015–2018 period. The research method used is a quantitative approach, the type of research is reciprocal associative, and the nature of the research is explanatory research. The sampling technique used is purposive sampling so that the number of samples obtained is 20 companies. The analytical method used is Smart PLS (partial least square). The results of this study indicate that DER has a positive and significant effect on ROA but has no effect on company value. CR has a positive and significant effect on ROA but has no effect on company value. ROA has a positive effect on company value. ROA as an intervening variable can mediate the effect of DER on company value but cannot mediate the effect of CR on company value.
Authors and Affiliations
Wendra Suhendry, Nagian Toni, Enda Noviyanti Simorangkir
Keywords
Related Articles
- EP ID EP705537
- DOI 10.47191/jefms/v4-i8-22
- Views 69
- Downloads 0
Profit Distribution Management and Determinant Factors: Empirical Study on Sharia Commercial Bank in Indonesia
Profit Distribution Management is critical for Islamic bank managers to ensure the banks they manage are sustainable. Profit Distribution Management will serve as the foundation for depositors' decision to invest in shar...
Knowledge Management: Perspective of Transformational Leadership on Employee Performance
This research is a development of the role of knowledge management, transformational leadership and Employee Engagement on the performance of private employees in the city of Makassar. The number of respondents who contr...
The Effect of Strategic Leadership, Organizational Identification, Perceived Organizational Support, Communication on Readiness of Changes and the Impact on Commitment to Change
The purpose of this study is to analyze how the influence of leadership, organizational identification, perceived organizational support and communication adequacy on readiness for change and commitment to change and als...
The Influence of Corporate Social Responsibility on Customer Loyalty in Life Insurance Businesses - Evidence from Vietnam
Corporate social responsibility (CSR) is a topic of growing academic and managerial interest (Maon et al., 2010), (Peloza and Shang, 2011), particularly regarding its impacts on consumer behavior variables. This relation...
The Influence of Perceived Usefulness and Perceived Ease of use on Behavioral Intention on Brimo Application Users in Bengkulu City
The current study aimed to examine the influence of perceived usefulness and perceived ease of use on behavioural intention among Brimo application users in the city of Bengkulu. A quantitative approach and survey method...