The Influence of Capital Structure, Dividend Policy, Fixed Asset Turnover and Audit Opinion on Company Value
Journal Title: Journal of Economics, Finance and Management Studies - Year 2024, Vol 7, Issue 07
Abstract
The value of a company’s stock is the price that investors are willing to pay to own one share of the company. If a company’s value is stable and continues to grow, investors will be more interested in investing their funds in it. Therefore, consistency in a company’s value is crucial to withstand various challenges. Based on data collected from the Indonesia Stock Exchange (IDX) during the period 2018-2022, this study aims to analyze the impact of capital structure, dividend policy, fixed asset turnover, and audit opinion on the value of pharmaceutical sub-sector companies listed on the exchange. The analysis is conducted both partially and simultaneously, using purposive sampling to gather fifty observational data points from ten different companies over five years. The research relies on secondary data obtained from companies’ annual reports. Panel data regression analysis in this study is performed using E-Views 12. The study’s result indicates that audit opinion, fixed asset turnover, dividend policy, and capital structure collectively impact firm value. Capital structure has a positive impact on firm value based on partially tested assumptions. Whereas audit opinion, fixed asset turnover, and dividend policy show negative impacts.
Authors and Affiliations
Jeconia Naomi Nataly Wangsanegara
Keywords
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- EP ID EP741337
- DOI 10.47191/jefms/v7-i7-89
- Views 14
- Downloads 0
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