The Effect of Leverage Ratio on Company Value with Activity Ratio as a Moderating Variable
Journal Title: International Journal of Social Science And Human Research - Year 2024, Vol 7, Issue 07
Abstract
The aim of this study is to evaluate the impact of leverage, measured by LDER (Long Term Debt to Equity Ratio), on company value, measured by PER (Price Earning Ratio), involving activity ratio represented by FAT (Fixed Asset Ratio) as a moderating variable in companies listed in the MNC36 index on the Indonesia Stock Exchange (BEI). The research period spans 10 years from 2013 to 2022, utilizing secondary data in the form of financial reports. The research sample is selected using purposive sampling, where 5 companies are chosen as samples with a total of 50 samples at the end of the research period. The analysis method employed is multiple linear regression, and hypothesis testing is conducted using SPSS version 23. The research findings indicate that leverage has a significant positive impact on firm value, while the activity ratio also has a positive and significant effect on firm value. Additionally, the activity ratio can moderate the relationship between leverage and firm value.
Authors and Affiliations
Titis Anjarwati, Akhmadi
Keywords
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- EP ID EP739899
- DOI 10.47191/ijsshr/v7-i07-08
- Views 25
- Downloads 0
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