Revaluation Asset Determinants toward Company’s Value
Journal Title: Journal of Economics, Finance and Management Studies - Year 2022, Vol 5, Issue 01
Abstract
This study’s objective is twofold. The first is to determine the effect of the investment opportunity set, leverage, and liquidity on fixed asset revaluation decisions. The second objective is to examine the effect of fixed asset revaluation decisions on firm value listed on the Indonesia Stock Exchange. The research method used is a quantitative method with statistical hypothesis testing through multiple linear regression (simultaneous and partial significance tests). The number of samples studied was 110, using panel data from 2016–2019. The results of the first stage of the study show that at the 5% significance level, the investment opportunity set and partial leverage have no effect on the revaluation of fixed assets, but liquidity has a significant negative effect on the revaluation of fixed assets. Meanwhile, the results of the second stage of the study show that the investment opportunity set has no significant effect on firm value, but leverage, liquidity, and fixed asset revaluation partially affect firm value.
Authors and Affiliations
Irma Sari Permata, Kurnia Heriansyah
Keywords
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- EP ID EP706902
- DOI 10.47191/jefms/v5-i1-29
- Views 72
- Downloads 1
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