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 32
- Downloads 0
Development of Bancassurance Distribution Channel of Military Insurance Corporation In Commercial Banks In Vietnam
Bancassurance is one of the new distribution channels and is currently a particularly effective insurance distribution channel in the world and in Vietnam. From the general overview of bancassurance, benefits of bancassu...
Stakeholder Management to Improve Business Performance of "Pekarangan Pangan Lestari (P2L)" Programs
This study aims to examine the influence of the community on the business performance of P2L program actors and to examine the role of universities and government support as moderators in this relationship. This research...
The Influence of Motivation and Compensation on Employee Performance at Pt Unisadhuguna with Job Satisfaction Mediation
This study aims to 1) determine the effect of motivation on employee performance, 2) determine the effect of compensation on employee performance, 3) determine the effect of motivation on employee job satisfaction, 4) de...
Does Work Motivation Mediate the Effect of Work Discipline on Employee Performance? Evidence from Indonesian Hotel Employees
This study aims to determine the effect of work discipline on employee performance with work motivation as a mediation. The population in this study were all employees working at Swiss-Belinn Hotel Malang, and the sampli...
The Influence of Product Quality, Price, and Information on Buying Decisions of Bulk Cooking Oil in Wringinanom District, Gresik District
The price of bulk cooking oil in East Java, which has decreased and increased in the last five years, is also followed by an increase in consumers of bulk cooking oil from 2017 to 2021. Bulk cooking oil is a very importa...