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Analysis of Company Characteristics of Firm Values: Profitability as Intervening Variables

Author

Listed:
  • M. Chabachib
  • Hersugondo Hersugondo
  • Erna Ardiana
  • Imang Dapit Pamungkas

Abstract

This study aims to analyze the factors that influence company value (PBV) in consumer goods companies listed on the Indonesia Stock Exchange in 2014-2018. The independent variables used in the study are capital structure (DER), company size (SIZE), liquidity (CR) with profitability (ROE) as an intervening variable. The population used in this study is all companies engaged in the consumer goods sector listed on the Indonesia Stock Exchange in 2014-2018. Sampling in this study used purposive sampling which resulted in a sample of 128 consumer goods sector companies. The method used is path analysis which is the development of multiple regression and bivariate analysis. The results of this study indicate that company size and liquidity have a positive and significant effect on profitability, the capital structure has a negative and not significant effect on profitability. Profitability and company size have a positive and significant effect on firm value. Capital structure and liquidity have a positive and not significant effect on firm value. Then profitability is able to mediate the influence of company size and liquidity on firm value, but profitability is not able to mediate the influence of capital structure on firm value.

Suggested Citation

  • M. Chabachib & Hersugondo Hersugondo & Erna Ardiana & Imang Dapit Pamungkas, 2020. "Analysis of Company Characteristics of Firm Values: Profitability as Intervening Variables," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 11(1), pages 60-70, January.
    • Handle: RePEc:jfr:ijfr11:v:11:y:2020:i:1:p:60-70
    DOI: 10.5430/ijfr.v11n1p60
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    References listed on IDEAS

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    1. Khalid Ashraf CHISTI & Khursheed ALI & Mouh-i-Din SANGMI, 2013. "Impact Of Capital Structure On Profitability Of Listed Companies (Evidence From India)," The USV Annals of Economics and Public Administration, Stefan cel Mare University of Suceava, Romania, Faculty of Economics and Public Administration, vol. 13(1(17)), pages 183-191, June.
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    Cited by:

    1. Zhang, Yijun & Meng, Zhenzhen & Song, Yi, 2023. "Digital transformation and metal enterprise value: Evidence from China," Resources Policy, Elsevier, vol. 87(PB).
    2. Putri, Indah Ayu Johanda, 2023. "Growth, Intellectual Capital, Financial Performance And Firm Value : Evidence From Indonesia Automotive Firms," OSF Preprints z53mf, Center for Open Science.
    3. I Gusti Ngurah Bagus Gunadi & I Gusti Bagus Wiksuana & Ida Bagus Anom Purbawangsa & Henny Rahyuda, 2020. "Impact of Structural Capital and Company Size on the Growth of Firm Value through Financial Performance with Good Corporate Governance as a Moderating Variable: Property and Real Estate Business in In," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(4), pages 332-352.
    4. Richard Yeaw Chong Seow, 2023. "Comparative Financial Performance and Firm Valuation Analysis: A Malaysian Logistics Service Provider Case Study," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 7(7), pages 594-613, July.
    5. Evelyn Wijaya & Budiyanto - & Nur Fadjrih Asyik, 2021. "Capital Structure Determinant and Profitability and Their Impact on Firm Value: Study in Indonesian Manufacturing Sector," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 13(10), pages 1-99, September.

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