The Influence of Internal and External Factors on Firm Value



Abstract Views
2533

Downloads
1805

Citations

Share

##plugins.themes.bootstrap3.article.sidebar##

Submitted Aug 27, 2020
Published Sep 10, 2020
10.24018/ejbmr.2020.5.5.492

Abstract viewed = 2533 times

Table of Contents

##plugins.themes.bootstrap3.article.main##

This research was conducted to analyze the effect of capital structure, liquidity, interest rates and exchange rates in influencing company value in mining sector companies listed on the Indonesia Stock Exchange (BEI). Sampling technique using a purposive sampling method the mining company listed on the Indonesia Stock Exchange in the year 2016 -2019 resulted in 37 companies that meet the criteria. Data analysis was performed using regression panel data with E-Views program 10 and a significance level of 5%. The results of the test were obtained that the capital structure influence significantly restricted a p-value of the company, liquidity does not have a significant effect on firm value, the interest rate does not have a significant effect on firm value, and the exchange rate stated with the middle rate has a significant negative effect on firm value.

Keywords: Capital Structure; Liquidity; Interest Rate; Exchange Rate

Downloads

Download data is not yet available.

References

  1. M. Ucal and G. Xydis, Multidirectional Relationship between Energy Resources, Climate Changes, and Sustainable Development: Techno-economic analysis, Sustain. Cities Soc., p. 102210, 2020.
     Google Scholar
  2. JVB de Andrade, BN Rodrigues, IFS dos Santos, J. Haddad, and GL Tiago Filho, "Constitutional aspects of distributed generation policies for promoting Brazilian economic development," Energy Policy, vol. 143, p. 111555, 2020.
     Google Scholar
  3. C.-H. Lee, RCY Chen, S.-W. Hung, and C.-X. Yang.Corporate Social Responsibility and Firm Value: The Mediating Role of Investor Recognition, Emerge. Mark. Finance. Trade, vol. 56, no. 5, pp. 1043–1054, 2020.
     Google Scholar
  4. X. Zhan, Y. Mu, M. Hora, and VR Singhal.Service excellence and market value of a firm: an empirical investigation of winning service awards and stock market reaction,. Int. J. Prod. Res. pp. 1–17, 2020.
     Google Scholar
  5. EF Brigham and JF Houston, Fundamentals of financial management. 2007.
     Google Scholar
  6. M. Fuad and A. Wandari, The Influence of Capital Structure and External Factors on Firm Value (Study at PT. Bank Central Asia, Tbk), J. Management. and Finance. 2018, doi: 10.33059 / jmk.v7i1.755.
     Google Scholar
  7. D. Fibriyanto, Analysis of the Effect of Capital Structure on the Value of Property and Real Estate Companies Listed on the Indonesia Stock Exchange 2009-2011, J. Adm. Business, vol. 27, no. 2, 2015.
     Google Scholar
  8. AI Lawal, Capital structure and the value of the firm: evidence from the Nigerian banking industry. J. Account. Management. JAM vol, vol. 4, no. 1, 2014.
     Google Scholar
  9. MH Siddik and M. Chabachib, The Influence of Roe, Cr, Size, and Institutional Ownership on Firm Value with Capital Structure as an Intervening Variable, Diponegoro J. Management. vol. 6, no. 4, pp. 608–622, 2017.
     Google Scholar
  10. F. Anggriawan, T. Topowijono, and N. Sudjana, The Influence Of Capital Structure On Company Value (Studies on Food and Beverage Sub-Sector Companies Listing on the Indonesia Stock Exchange 2011-2015), J. Adm. Business, vol. 50, no. 4, pp. 105–114, 2017.
     Google Scholar
  11. R. Çelik, B. Bilen, and Ö. Bilen, The Impacts of Changes in Macro-Economic Data on Net Working Capital: The Case of Turkey's Industrial Sector, Procedia Econ. Finance, 2016, doi: 10.1016 / s2212-5671 (16) 30184-8.
     Google Scholar
  12. V. Untu and M. Welley, Factors Affecting Firm Value in the Agricultural Sector on the Indonesia Stock Exchange 2010-2013, J. Ris. Econ. Management, Business and Accounts, vol. 3, no. 1, p. 2524, 2015.
     Google Scholar
  13. G. Syardiana, A. Rodoni, and ZE Putri, The effect of the investment opportunity set, capital structure, company growth, and return on assets on firm value, Accountability, vol. 8, no. 1, pp. 39–46, 2015.
     Google Scholar
  14. AA Dewi, .Ayu Kemara, & Badjra, Ida Bagus. (2017), Profitable Influence. Akt. Intangibles, Company Size, and Structure. Capital Against Company Value. Management E-Journal. Udayana University, vol. 6, no. 4, pp. 2161–2190.
     Google Scholar
  15. DC Pangestuti, Pengaruh EPS, DER dan ROA Terhadap Tobins Q Pada Perusahaan Pertambangan dan Energi Yang Go Publik Di Bursa Efek Indonesia. Jurnal Mitra Manajemen, 2(5), 449-464., 2018.
     Google Scholar
  16. S. Lumoly, S. Murni, and VN Untu, .The Effect of Liquidity, Company Size and Profitability on Firm Value (Studies on Metal Companies and Alike Listed on the Indonesia Stock Exchange),. J. EMBA J. Ris. Econ. Management, Business and Accounts. vol. 6, no. 3, 2018.
     Google Scholar
  17. IBNP WIjaya and NK Purnawati, The Effect of Liquidity and Institutional Ownership on Firm Value Moderated by Dividend Policy, E-Jurnal Manajemen. Univ. Udayana , vol. 3, no. 12, 2014.
     Google Scholar
  18. I. Thaib and A. Dewantoro, The effect of profitability and liquidity on firm value with capital structure as an intervening variable, J. Risk Bank. Management. and Accounts. vol. 1, no. 1, pp. 25–44, 2017.
     Google Scholar
  19. D. Desryadi Rahmatullah, The Effect of Profitability and Liquidity on Firm Value with Capital Structure as an Intervening Variable, J. Accountants. Unesa, vol. 7, no. 2, 2019.
     Google Scholar
  20. M. Noerirawan, A. Muid, and others, The Influence of Company Internal and External Factors on Company Value (Empirical Study of Manufacturing Companies Listed on the Indonesia Stock Exchange 2007-2010 Period), Faculty of Economics and Business, 2012.
     Google Scholar
  21. H. Hamidah, H. Hartini, and U. Mardiyati,. The Influence of Inflation, BI Interest Rates, Profitability, and Financial Risk on Firm Value in the Property Sector 2011-2013,. JRMSI-Jurnal Ris. Manaj. Indonesian Science., vol. 6, no. 1, pp. 395–416, 2015.
     Google Scholar
  22. A. Khurshid, “The effect of interest rate on investment; Empirical evidence of Jiangsu Province, China,” J. Int. Stud. Vol, vol. 8, no. 1, 2015.
     Google Scholar
  23. EM Putra, P. Kepramerani, and NLG Novitasari, The Effect of Financial Performance, Inflation and Interest Rates on Firm Value, Pros. Semnas Has. Researcher. 2016.
     Google Scholar
  24. I. Gede Adiputra, The effect of internal and external factors on the value of a finn through its investment opportunities on the stock exchange of the Southeast Asian Countries, Int. Bus. Manag. , 2016, doi: 10.3923 / ibm.2016.370.376.
     Google Scholar
  25. Ifionu and Ibe, Inflation, Interest Rate, Real Gross Domestic Product and Stock Prices on the Nigerian Stock Exchange: A Post SAP Impact Analysis, Res. J. Finance. Accounting Online), 2015.
     Google Scholar
  26. Andi Novianto, The effect of financial decisions, ownership structure, and interest rates on the value of property and real estate companies that go public, STIE Perbanas Surabaya, 2015.
     Google Scholar
  27. C. Agustina and A. Ardiansari, The Influence of Macroeconomic Factors and Financial Performance on Firm Value, Manag. Anal. J., vol. 4, no. 1, 2015.
     Google Scholar
  28. LP Putri and others, .The Influence of Inflation and the Rupiah Exchange Rate against the US Dollar on the Stock Performance of Property and Real Estate Companies in Indonesia,. J. Ekon. , vol. 17, no. 1, p. 163042, 2017.
     Google Scholar
  29. LB Akeem, ET K, MW Kiyanjui, and M. Kayode, Effects of Capital Structure on Firm's Performance: Empirical Study of Manufacturing Companies in Nigeria, J. Finance. Invest. Anal., 2014.
     Google Scholar
  30. NKB Astuti and IP Yadnya, The Effect Of Company Profitability, Liquidity, And Size On Company Value Through Dividend Policy. E-Jurnal Manajemen. Univ. Udayana, 2019, doi: 10.24843 / ejmunud.2019.v08.i05.p25.
     Google Scholar
  31. H. Parsian and AS Koloukhi, A study on the effect of free cash flow and profitability current ratio on dividend payout ratio: Evidence from Tehran Stock Exchange, Management. Sci. Lett., 2014, doi: 10.5267 / j.msl.2013.11.033.
     Google Scholar
  32. DC Pangestuti, Manajemen Keuangan Internasional, Deepublish, 2020.
     Google Scholar
  33. O. Shenkar, Y. Luo, and T. Chi, International business. 2014.
     Google Scholar
  34. International Monetary Fund, Long-Term Investors and Their Asset Allocation: Where Are They Now?, Glob. Finance. Stab. Rep. 09/11, 2011.
     Google Scholar
  35. P. Tufano and D. Schneider, Using financial innovation to support savers: From coercion to excitement, in Insufficient Funds: Savings, Assets, Credit, and Banking Among Low-Income Households, 2009.
     Google Scholar
  36. MA Maharditya, L. Layyinaturrobaniyah, and M. Anwar, .Implication of Macroeconomic Factors to Stock Returns of Indonesian Property and Real Estate Companies,. J. Din. Management, 2018, doi: 10.15294 / jdm.v9i1.14656.
     Google Scholar
  37. KME Dominguez and LL Tesar, Exchange rate exposure, J. Int. Econ., 2006, doi: 10.1016 / j.jinteco.2005.01.002.
     Google Scholar


Most read articles by the same author(s)