Effect of Profitability and Liquidity on Firm Value (Empirical Study On Food and Beverage Companies Listed On The Indonesia Stock Exchange)

Authors

  • Dede Hertina Widyatama University, Bandung, Indonesia Author
  • Muhamad Erwin Wardani Widyatama University, Bandung, Indonesia Author
  • Zilzalmi Widyatama University, Bandung, Indonesia Author
  • Adriana Madya Marampa Toraja Christian University, Indonesia Author

Keywords:

Profitability, Liquidity, Firm Value

Abstract

 This study aims to explain and determine the effect of Profitability and Liquidity on firm value jointly or partially and to determine the variables that have a dominant influence on firm value in food and beverage companies listed on the Indonesia Stock Exchange. Hypothesis testing used in this research is normality test, multicollinearity test, multiple linear regression test, and hypothesis testing which is divided into f test and t test. The results of the study stated that the profitability and liquidity variables had a positive effect but not too dominant because the hypothesis test was not accepted because it did not meet the minimum requirements for F and T tables. The F-count is smaller than the F-table value (0.923 < 4.76) and the significance value has a number > 0.05 (0.456 < 0.05.

Downloads

Download data is not yet available.

References

Sale, J.E.M., L.H. Lohfeld, and K. Brazil, Revisiting the quantitative-qualitative debate: Implications for mixed-methods research. Quality and quantity, 2002. 36(1): p. 43-53 DOI: https://doi.org/10.1023/A:1014301607592.

Shenaar-Golan, V. and O. Walter, Do Emotional Intelligence and Self-compassion Affect Disordered Eating Perceptions? American journal of health behavior, 2020. 44(4): p. 384-391 DOI: https://doi.org/10.5993/AJHB.44.6.2.

Spiceland, J.D., et al., Intermediate accounting. Vol. 5. 2013: McGraw-Hill/Irwin New York, NY.

Sukandi, P., Effect of Profitability and Liquidity on Share Prices (Survey on Industrial Companies of Consumer Goods Listed on Indonesia Stock Exchange Period 2016-2018). Review of International Geographical Education Online, 2021. 11(5): p. 4898-4902.

Jubaedah, S. and N. Nurjanah, Influence of Company Size and Debt to Equity Ratio (DER) on The Rent of Sukuk Ijarah. Journal Socio Humanities Review, 2021. 1(2): p. 60-68.

Ammy, B. and J.S. Hasibuan, The Influence of Current Ratio and Debt to Equity Ratio on Return On Assets In construction and building companies listed on the Indonesia Stock Exchange. International Journal of Economic, Technology and Social Sciences (Injects), 2020. 1(1): p. 117- 128.

Ang, J.S., Small business uniqueness and the theory of financial management. Journal of small business finance, 1991. 1(1): p. 1-13.

Baskin, J., Corporate liquidity in games of monopoly power. The Review of Economics and Statistics, 1987: p. 312-319 DOI: https://doi.org/10.2307/1927239.

Arif, M. and T.B. Awwaliyah, Market share, concentration ratio and profitability: evidence from Indonesian Islamic banking industry. Journal of Central Banking Theory and Practice, 2019. 8(2): p. 189-201 DOI: https://doi.org/10.2478/jcbtp-2019-0020.

Tang, D., et al., Differences in Overweight and Obesity between the North and South of China. American Journal of Health Behavior, 2020. 44(6): p. 780-793 DOI: https://doi.org/10.5993/AJHB.44.6.4.

Budiharjo, R., The Effect of Capital Stucture on Firm Value with Profitability as a Moderating Variable. IOSR Journal of Business and Management (IOSR-JBM), 2020. 22(4): p. 27-33.

Bukkuri, A., Optimal control analysis of combined chemotherapy-immunotherapy treatment regimens in a PKPD cancer evolution model. Biomath, 2020. 9(1): p. 1-12 DOI: https://doi.org/10.11145/j.biomath.2020.08.173.

Tokeyeva, A., D. Rayev, and D. Dauen, BELT AND ROAD: BENEFITS AND PROSPECTS FOR KAZAKHSTAN. Central Asia & the Caucasus (14046091), 2020. 21(1) DOI: https://doi.org/10.37178/ca-c.20.1.07.

Cesarec, I., R. Mikac, and D. Spevec, The Concept of Human Security as a Basis for the Application of Big Data Concept in Establishment of Early Warning System for Crisis Management in the Republic of Croatia. Croatian International Relations Review, 2020. 26(86): p. 72-95 DOI: https://doi.org/10.37173/cirr.26.86.3.

Lobão, J. and A.I. Costa, Do Fixed-Income ETFs Overreact? Evidence of Short-term Predictability following Extreme Price Shocks. Cuadernos de Economía, 2020. 43(122): p. 131- 144 DOI: https://doi.org/10.32826/cude.v42i122.145.

Abulela, M.A.A. and M.M. Harwell, Data Analysis: Strengthening Inferences in Quantitative Education Studies Conducted by Novice Researchers. Educational Sciences: Theory and Practice, 2020. 20(1): p. 59-78 DOI: https://doi.org/10.12738/jestp.2020.1.005.

Moskowitz, S. and J.-M. Dewaele, The role of intellectual humility in foreign language enjoyment and foreign language classroom anxiety. Eurasian Journal of Applied Linguistics, 2020. 6(3): p. 521-541.

Jati, W., The Effect of Non Performing Loan and Capital Adequacy Ratio on Return on Assets in Bank Victoria International, Tbk Period 2009-2018. Budapest International Research and Critics Institute-Journal (BIRCI-Journal) Volume, 2021. 4 DOI: https://doi.org/10.33258/birci.v4i1.1630.

Thompson, E.L., et al., Development and validation of a child physical and sexual abuse prevention scale. American journal of health behavior, 2021. 45(5): p. 947-955 DOI: https://doi.org/10.5993/AJHB.45.5.14.

Herman Ruslim, M., The Effect Of Financial Ratio On Company Value With Inflation As A Moderation Variable. Jurnal Akuntansi, 2019. 23(1): p. 34-46 DOI: https://doi.org/10.24912/ja.v23i1.458.

Fajaria, A.Z. and N. Isnalita, The effect of profitability, liquidity, leverage and firm growth of firm value with its dividend policy as a moderating variable. International Journal of Managerial Studies and Research (IJMSR), 2018. 6(10): p. 55-69 DOI: https://doi.org/10.20431/2349- 0349.0610005.

Godswill, O., et al., Working capital management and bank performance: Empirical research of ten deposit money banks in Nigeria. Banks & bank systems, 2018(13, Iss. 2): p. 49-61 DOI: https://doi.org/10.21511/bbs.13(2).2018.05.

Downloads

Published

2022-01-30

How to Cite

Hertina, D., Wardani, M. E., Zilzalmi, & Marampa, A. M. (2022). Effect of Profitability and Liquidity on Firm Value (Empirical Study On Food and Beverage Companies Listed On The Indonesia Stock Exchange). CENTRAL ASIA AND THE CAUCASUS, 23(1), 4370-4377. https://ca-c.org/CAC/index.php/cac/article/view/431

Plaudit

Similar Articles

1-10 of 68

You may also start an advanced similarity search for this article.

Most read articles by the same author(s)