Can Profitability Intervene in the Effects of Liquidity, Activity, and Leverage on Company Value?
Journal Title: Journal of Economics, Finance and Management Studies - Year 2023, Vol 6, Issue 07
Abstract
This study was conducted to examine the effect of liquidity, leverage, and activity on company value using profitability as an intervening variable. The companies used as research objects are various manufacturing companies in IDX30 listed on the Indonesia Stock Exchange with an observation period of 2016-2021. All collected data was analysed with Smart PLS software. The results of the analysis show that, directly, leverage and activity affect profitability, and profitability affect company value. Meanwhile, liquidity has no effect on profitability. In addition, liquidity, leverage, and activity have no effect on company value. When profitability becomes an intervening variable, profitability amplifies the effect of leverage and activity on company value. However, profitability is not able to strengthen the effect of liquidity on company value.
Authors and Affiliations
Erwin Dyah Astawinetu, Istiono, Titiek Rachmawati, Parikesit Penangsang
Keywords
Related Articles
- EP ID EP727229
- DOI 10.47191/jefms/v6-i7-37
- Views 52
- Downloads 0
Support for Entrepreneurship is A Key Criteria for Tax Reform
This article presents scientific and theoretical views on improving tax administration in creating a favorable environment and investment climate for business entities, the analysis of statistical data is widely covered,...
Context of Organization and its Scientific Approach
The topic of this paper is context of organization as a new element of international standard for quality management ISO 9001:2015. By applying a scientific approach, we presented some key elements of internal and exter...
The Nexus between Auditor Switching and Audit Opinion on Audit Report
The purpose of this study is to analyze the influence of Auditor Switching and Audit Opinions oni Audit Report Lag. The data in this study uses secondary data in the form of an audited annual Financial Statement from ban...
Impacts of Covid-19 Outbreak in Mental Health of Physicians and Nurses
COVID-19 was a disease emerged in China and quickly became a pandemic. The pandemic has put health professionals under strong pressure. This situation can cause perpetual damage to mental health. Objective: the objectiv...
Analysis of donor investment in Ethiopian Institute of Agricultural Research
The study examines the impact of foreign aid on agricultural research in Ethiopia over the period 2011-2020. According to the study, donor allocations averaged 23% of the total amount of funds received by the institution...