ANALISIS PENGARUH LEVERAGE, FINANCIAL PERFORMANCE FIRM SIZE DAN SALES GROWTH TERHADAP FIRM VALUE PADA PERUSAHAAN MANUFAKTUR DI BURSA EFEK INDONESIA

Fenty Fauziah, Sri Wahyuni Jamal

Abstract


This study aims to analyze the effect of leverage, financial performance, firm size and sales growth on firm value. The study population is all manufacturing companies listed on the Indonesian stock exchange, the period 2017 - 2018. The sample selection uses a purposive sampling method. Data analysis and hypothesis testing were carried out using a structural equation modeling approach using the Eviews 11. The results showed that financial performance and sales growth had a significant effect on firm value. investors in making investment decisions view the level of profitability from their ability to manage assets. The ability to manage assets creates sales growth so that it can get maximum profit. Both of these things can increase the company's value in the market. Investors in making investment decisions generally do not consider several factors as a whole, so that the right investment decisions will be obtained.


Keywords


Leverage, financial performance, firm size, sales growth dan firm value

Full Text:

PDF

References


Aktas, N., Croci, E., & Petmezas, D. 2015. Is working capital management value-enhancing? Evidence from firm performance and investments. Journal of Corporate Finance, 30, 98-113.

Al-Mwalla, M. 2012. The impact of working capital management policies on firm's profitability and value: The case of Jordan. International Research Journal of Finance and Economics, 85, 147-153.

Arachchi, H. A. N., Perera, P., & Vijayakumaran, R. 2017. The impact of working capital management on firm value: Evidence from frontier market. Asian Journal of Finance & Accounting, 9(2), 399-413.

Banos-Caballero, S., Garcí-Teruel, P. J., & Martínez-Solano, P. 2010. Working capital management in SMEs. Accounting and Finance, 50(3), 511-527.

Baños-Caballero, S., Garcí-Teruel, P. J., & Martínez-Solano, P. 2014. Working capital management, corporate performance, and financial constraints. Journal of Business Research, 67(3), 332-338.

Brigham, E. F & J. F. Houston. 2006. Dasar-dasar Manajemen Keuangan. Buku 2. Jakarta. Salemba Empat.

Brigham, E.F., & Houston, J.F. 2011. Fundamental of Financial Management, 13th Edition. New York: Thomson South Western McGraw-Hill.

Chen, W.P., Chung, H., Hsu, T.L. & Wu, S. 2010. External Financing Needs, Corporate Governance, and Firm Value. Corporate Governance: An International Review, 18 (3), 234-249.

Deloof, M. (2003). Does working capital management affect profitability of Belgian firms?. Journal of Business Finance & Accounting, 30(3-4), 573-588

Ding, S., Guariglia, A., & Knight, J. 2013. Investment and financing constraints in China: Does working capital management make a difference?. Journal of Banking & Finance, 37(5), 1490-1507.

Dixon, R., Guariglia, A., & Vijayakumaran, R. 2017. Managerial ownership, corporate governance and firms' exporting decisions: Evidence from Chinese listed companies. The European Journal of Finance, 23(7-9), 802-840.

Ehrhardt, M. C., & Eugene F. Brigham. 2009. Financial Management: Theory and Practice.Thirteenth Edition. Mason: South-WesternCengageLearning.

Fahmi,I. 2016. Pengantar Manajemen Keuangan: Teori dan Soal Jawab. Bandung: Alfabeta.

Fisman, R., & Love, I. 2003. Trade credit, financial intermediary development and industry growth. The Journal of Finance, 58(1), 353-374.

Fosu, S., Danso, A., Ahmad, W. & Coffie, W., 2016. Information asymmetry, leverage and firm value: Do crisis and growth matter?. International Review of Financial Analysis, 46, 140-150.

Gao, J., & Wang, J. 2017. Is working capital information useful for financial analysts? Evidence from China. Emerging Markets Finance and Trade, 53(5), 1135-1151.

Ghozali, I. & H. Latan. 2012. Partial Least Square:Konsep, Teknik dan Aplikasi Menggunakan Program SmartPLS 2,0 M. Semarang: Badan Penerbit Universitas Diponegoro.

Islam, R , Mohammad, E. H. , Mohammad, N.H. & Md. M. A. (2018). Impact of Working Capital Management on Corporate ProfitabilityEmpirical Evidence from Pharmaceutical Industry of Bangladesh. International Journal of Economics and Finance, 10(9), 136-144.

Jensen, and Meckling. 1976. Theory of the Firm: Managerial Behavior, Agency Costs and Ownership Structure. Journal of Financial Economics, 3(4), 305-360.

Kasmir. 2017. Analisis Laporan Keuangan. Cetakan ke 10. PT. Raja Grafindo Persada, Jakarta.

Kieschnick, R., Laplante, M., & Moussawi, R. 2013. Working capital management and shareholders’ wealth. Review of Finance, 17(5), 1827-1852.

Kim, Y. H., & Chung, K. H. 1990. An integrated evaluation of investment in inventory and credit: A cash flow approach. Journal of Business Finance & Accounting, 17(3), 381-389.

Korteweg, A. 2010. The Net Benefits to Leverage. The Journal Of Finance. 65 (6), 2137-2170

Lamberson, M. 1995. Changes in working capital of small firms in relation to changes in economic activity. American Journal of Business, 10(2), 45-50.

Lewellen, W., McConnel, J., & Scott, J. 1980. Capital market influences on trade credit policies. Journal of Financial Research, 3, 105-113.

Li, K., Lu, L., Mittoo, U. R., & Zhang, Z. 2015. Board independence, ownership concentration and corporate performance-Chinese evidence. International Review of Financial Analysis, 41, 162-175.

Maryanti. E. 2016. Analisis Profitabilitas, Pertumbuhan Perusahaan, Pertumbuhan Penjualan Dan Struktur Aktiva Terhadap Struktur Modal Pada Perusahaan Sektor Industri Barang Konsumsi Yang Terdaftar Di Bursa Efek Indonesia. Riset Akuntansi dan Keuangan Indonesia, 1(2), 143-151.

Modigliani F. & Miller M.H, 1958. The Cost Of Capital, Corporation finance and The Theory of Investment, The American Economic Review, Volume XLVIII, June 1958

Mohamad, N. E. A. B., & Saad, N. M. B. 2010. Working capital management : The effect of market valuation and profitability in Malaysia. International Journal of Business and Management, 5(11), 140-147.

Pass, C. L., & Pike, R. H. 1984. An overview of working capital management and corporate financing. Managerial Finance, 10(3), 1-11.

Solimun. 2010. Analisis Multivariat, Pemodelan Struktural, Metode Partial Least Square-PLS. Malang: Citra Malang.

Sudiyatno, B. Elen P. & Sri, S. 2017. Working Capital, Firm Performance, and Firm Value: An Empirical Study in Manufacturing Industry on Indonesia Stock Exchange. Economics World. Vol. 5, No. 5, 444-450.

Vijayakumaran, R. 2019. Efficiency of Working Capital Management and Firm Value: Evidence From Chinese Listed Firms. International Journal of Financial Research Vol. 10, No. 6, 133-144

Von Geibler, J. 2013, Market-based governance for sustainability in value chains: Conditions for successful standard setting in the palm oil sector. Journal of Cleaner Production, 1(2), 27-35.

Wasiuzzaman, S. 2015. Working capital and firm value in an emerging market. International Journal of Managerial Finance, 11(1), 60-79.




DOI: https://doi.org/10.31293/rjabm.v4i2.4874

Refbacks

  • There are currently no refbacks.


Copyright (c) 2020 RJABM (Research Journal of Accounting and Business Management)



 

 

Creative Commons License
RJABM (Research Journal of Accounting and Business Management) is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.