Determination of Company's Value: A Study with Investment Opportunity as a Moderator Variable
Journal Title: Journal of Economics, Finance and Management Studies - Year 2022, Vol 5, Issue 01
Abstract
This research focuses on the state of a company's valuation, which is always changing. The utilized variables to estimate firm value include free cash flow and interest rates, both of which have a positive relationship with company's value. The second purpose is to investigate the current situation of investment opportunities in industrial companies that are similarly highly volatile. The availability of free cash flow indicates the interest rate has a positive relationship with the investment opportunity set. An explanatory research design is used in this study, which aims to examine the correlation between variables. The manufacturing companies that were listed on the Indonesia Stock Exchange between 2013 and 2018 are the focus of this study. Thus, data were collected from 612 units using a purposive sampling technique. The findings reveal that whereas free cash flow has a strong positive indirect effect on company value via mediating the investment opportunity set, interest rates have a negative and minor indirect effect on firm value via mediating the investment opportunity set.
Authors and Affiliations
Irma Sari Permata, Bambang Purwoko, Tri Widyastuti, Apollo Daito
Keywords
Related Articles
- EP ID EP706828
- DOI 10.47191/jefms/v5-i1-06
- Views 70
- Downloads 0
Providing Income Tax Article 21 Tax Incentives during the Covid-19 Pandemic for the Stability of Economic Growth in Indonesia
This study discusses the policy analysis of providing Article 21 Income Tax incentives for taxpayers affected by the coronavirus (covid-19) outbreak in order to maintain the stability of economic growth. The aim is to de...
Improving Employee Performance Based on Competency and Work Environment for Employees in Subdistricts throughout Jember Regency
The importance of human resources is in line with the increasing demands of organizations. More intensive and optimal performance is needed to increase work results and organizational profits. This research was motivated...
Analysis of the Effect of Supervision on the Performance of Nurses with Work Conflicts as Moderator at Royal Prima Marelan Hospital
Nurses as part of the hospital organization, of course, are required to be able to provide effective and efficient services. But in reality, the services received by patients are not in line with expectations, this can b...
Analysis of the Sukuk Market Development in the Countries of The World
Islamic securities sukuk, introduced as a new instrument of the global financial system in the 21st century, have grown rapidly in recent years. Interest in it is growing, as it showed a growth trend even during the glob...
The Effect of Motivation and Leadership on Employee Performance through Job Satisfaction at The Directorate General of Rural Area Development Indonesia
This study aims to determine the effect of motivation and leadership on employee performance at the directorate general of rural area development, determine the effect of motivation and leadership on job satisfaction at...