Financial Performance and Firm Value with Managerial Ownership as Moderating Variables
Journal Title: International Journal of Social Science And Human Research - Year 2023, Vol 6, Issue 05
Abstract
This study aims to examine the effect of financial performance on firm value, both direct effect and through managerial ownership as an intervening variable. Financial performance consists of three variables: Profitability as measured by return on equity (ROE), Leverage as measured by debt to equity ratio (DER), and Liquidity as measured by current ratio (CR) to firm value as measured by price to book value (PBV) with managerial ownership (MOWN) as a moderating variable. The population in this study are infrastructure companies listed on the Indonesia Stock Exchange with a sample of 15 companies with a research period of 4 years, using a purposive sampling technique. To test the hypothesis, multiple regression analysis was used with a significance level of 0.05. The results showed that profitability had a positive and significant effect on firm value, leverage had a negative and significant effect on firm value, while liquidity had no effect on firm value. Managerial ownership is able to moderate the relationship between liquidity and firm value, but cannot moderate the relationship between Debt Equity Ratio and profitability to firm value.
Authors and Affiliations
Aris Gifan Triyana Madhani, Sutrisno
Keywords
Related Articles
- EP ID EP715541
- DOI 10.47191/ijsshr/v6-i5-04
- Views 75
- Downloads 0
The Effect of Interaction between Training Methods and Eye-Hand Coordination on the Accuracy of the Forehand Groundstroke of Court Tennis
This study aims to determine the Effect of Training Methods on the Accuracy of Court Tennis Reviewed from Eye Hand Coordination. This study uses a 2x2 factorial design experiment, which is an experimental design method t...
Rule Following: A Criterion for Wittgenstein’s meaning as Use Theory
Since the publication of Wittgenstein on Rules and Private Language by Saul Kripke, there have been controversial interpretations of what it means by ‘rule following’ with regard to the question of meaning. Kripke mainta...
Managing Disruptive Change through Leadership in Schools
Prior to the Covid-19 global pandemic, school heads used to operate within known boundaries, with clear parameters, with set duty roasters, with clear lines of accountability and rules governing most things. Bureaucracy...
Data Visualization Analysis in the Management Information System for Submitting Credit Scores for Education Personnel
Education staff have an important role in facilitating the implementation of the tridharma of higher education and are an indicator of educational administration success. This study looks at how data visualization was im...
In-Service Training and its Role in the Administrative Selection Process of School Principals
In the Greek literature there is a debate on the development, management, organization and effectiveness of the school units and which is the role of the school principals in these processes. Two concepts in Greece have...