The THE EFFECT OF PROFITABILITY, FIRM SIZE, EQUITY OWNERSHIP AND FIRM AGE ON FIRM VALUE (LEVERAGE BASIS): Evidence from the Indonesian Manufacturer Companies
DOI:
https://doi.org/10.14738/abr.91.9649Keywords:
Profitability, Firm Size, Equity Ownership, Firm AgeAbstract
This study examines the effect of profitability, firm size, equity ownership and firm age on firm value. This is a quantitative research study. Samples were taken from 65 manufacturing companies that go-public and listed at the Indonesian Stock Exchange from 2012 to 2019. Data were analysed by Path Analysis with Amos SPSS 24. Findings indicate that profitability and firm size influence firm value significantly and positively. Whilst, firm value is affected by profitability and firm size, it is not influenced significantly and positively by firm age. On the other hand, owner’s equity provides a negative effect to firm value.
References
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Riyadi, R., & Fahtoni, A. F. (2014). Pengaruh reputasi underwriter, ukuran perusahaan, umur perusahaan, profitabilitas terhadap underpricing saham pada penawaran umum perdana (IPO) di Bursa Efek Indonesia (BEI) periode 2009-2012. Jurnal Online Mahasiswa (JOM) Bidang Ilmu Ekonomi, 1(1), 1-14.
Safitri, O. N. (2014). The Influence of Capital Structure And Profitability On Firm Value (A Study in Retail Companies Listed in Indonesia Stock Exchange 2010-2013 period). Jurnal Administrasi Bisnis, 13(2).
Setiadharma, S., & Machali, M. (2017). The effect of asset structure and firm size on firm value with capital structure as intervening variable. Journal of Business & Financial Affairs, 6(4), 1-5.
Sutrisno. (2012). Manajemen Keuangan Teori, Konsep dan Aplikasi. Jakarta: Literata Lintas Media.
The Indonesian Ministry of Industry. (2019). Manufacturing Industry Plays Crucial Role to boost Investment and Export, Retrieved January 17, 2019, from
https://kemenperin.go.id/artikel/20091/Industri-Manufaktur-Berperan-Penting-Genjot-Investasi-dan-Ekspor-
Trisnawati, R. (1998). Pengaruh Informasi Prospektus Terhadap Return Saham di Pasar Perdana (Doctoral dissertation, Universitas Gadjah Mada).
Yasuda, T. (2005). Firm growth, size, age and behavior in Japanese manufacturing. Small Business Economics, 24(1), 1-15.
Ali, H., & Hilmi, U. (2008). Analisis Faktor-Faktor yang Mempengaruhi Ketepatan Waktu pennyampaian Laporan Keuangan.
Amanah, R. (2014). Pengaruh rasio likuiditas dan rasio profitabilitas terhadap harga saham (Studi pada perusahaan Indeks LQ45 periode 2008-2012). Jurnal Administrasi Bisnis, 12(1).
Arrow, K. J. (1962). Economic welfare and the allocation of resources. The Rate and Direction of Inventive Activity.
Bandanuji, A., & Khoiruddin, M. (2020). The Effect of Business Risk and Firm Size on Firm Value with Debt Policy as Intervening Variable. Management Analysis Journal, 9(2), 200-210.
Benson, B. W., & Davidson III, W. N. (2009). Reexamining the managerial ownership effect on firm value. Journal of Corporate Finance, 15(5), 573-586.
Budagaga, A. (2017). Dividend payment and its impact on the value of firms listed on Istanbul stock exchange: A residual income approach. International Journal of Economics and Financial Issues, 7(2), 370.
Chen, L. J., & Chen, S. Y. (2011). The influence of profitability on firm value with capital structure as the mediator and firm size and industry as moderators. Investment Management and Financial Innovations, 8(3), 121-129.
Cheung, Y. W., & Ng, L. K. (1992). Stock price dynamics and firm size: An empirical investigation. The Journal of Finance, 47(5), 1985-1997.
Damayanti, N. P. W. P., & Suartana, I. W. (2014). Pengaruh Kepemilikan Manajerial dan Kepemilikan Institusional pada Nilai Perusahaan. E-Jurnal Akuntansi, 9(3), 575-590.
Daryanti Zen, S., & Herman, M. (2007). Pengaruh Harga Saham Umur Perusahaan dan Rasio Profitabilitas Perusahaan Terhadap Tindakan Perataan Laba yang Dilakukan Oleh Perusahaan Perbankan yang Terdaftar Di Bursa Efek Jakarta. Jurnal Akuntansi & Manajemen, 2(2), 57-71.
Dehuan, J., & Jin, Z. (2008). Firm performance and stock returns: An empirical study of the top performing stocks listed on Shanghai Stock Exchange. Academy of Accounting and Financial Studies Journal, 12(1), 79.
Devi, A. (2016). Factors Contributing to Capital Structure at Manufacturers that listed at the Indonesian Stock Exchange between 2012 to 2014 (Doctoral Dissertation, STIE Perbanas Surabaya).
Duy, N. T., & Phuoc, N. P. H. (2016). The relationship between firm sizes and stock returns of service sector in ho chi minh city stock exchange. Rev. Eur. Stud., 8, 210.
Fahmi, I, 2012. Pengantar Manajemen Keuangan Teori dan Soal Jawab. Bandung: CV. Alfabeta
Fuerst, O., & Kang, S. (2000). Corporate Governance Expected Operating Performance (pp. 1-138). and Pricing. Working Papers.
Gerianta, W. Y. (2008). Penyebab Underpricing Pada Penawaran Saham Perdana di Bursa Efek Indonesia. Jurnal Akuntansi dan Bisnis, 3(2), 11-18.
Gregson, T. (1992). The advantages of LISREL for accounting researchers. Accounting Horizons, 6(4), 42.
Grosfeld, I. (2006). Ownership concentration and firm performance: Evidence from an emerging market.
Haruman, T. (2008). Pengaruh Struktur Kepemilikan Terhadap Keputusan Keuangan Dan Nilai Perusahaan Survey pada Perusahaan Manufaktur di PT. Bursa Efek Indonesia.
Jovanovic, B. (1982). Selection and the Evolution of Industry. Econometrica: Journal of the Econometric Society, 649-670.
Kontesa, M. (2015). Capital structure, profitability, and firm value. What’s new. Research journal of Finance and Accounting, 6(20), 185-192.
López‐Pérez, M. E., Melero, I., & Javier Sese, F. (2017). Management for sustainable development and its impact on firm value in the SME context: Does size matter?. Business Strategy and the Environment, 26(7), 985-999.
Martins, M. M., & Lopes, I. T. (2016). Intellectual capital and profitability: a firm value approach in the European companies. Intellectual capital and profitability: a firm value approach in the European companies, (3), 234-242.
Morris, R. D. (1987). Signalling, agency theory and accounting policy choice. Accounting and business Research, 18(69), 47-56.
Murphy, C. (2020). Indonesia Stock Exchange (ISX), Retrieved 23 October 2020, from https://www.investopedia.com/terms/j/jakartastockexchange.asp
Petruzzelli, A. M., Ardito, L., & Savino, T. (2018). Maturity of knowledge inputs and innovation value: The moderating effect of firm age and size. Journal of Business Research, 86, 190-201.
Pradhan, R. S., & Paudel, L. (2017). Impact of fundamental factors on stock price: a case of Nepalese commercial banks. Available at SSRN 3044108.
Pratama, A., & Erawati, T. (2014). Pengaruh current ratio, debt to equity ratio, return on equity, net profit margin dan earning per share terhadap harga saham (study kasus pada Perusahaan Manufaktur yang terdaftar di Bursa Efek Indonesia periode 2008-2011). Jurnal Akuntansi, 2(1), 1-10.
Prowse, S. D. (1992). The structure of corporate ownership in Japan. The Journal of Finance, 47(3), 1121-1140.
Putra, P. D., & Thohiri, R. (2013). Analisis Faktor-faktor yang Mempengaruhi Ketepatan Waktu Pelaporan Keuangan pada Perusahaan yang Listing di BEI Periode 2008-2010. Jurnal Bina Akuntansi, 18, 16-27.
Razdar, M. R., & Ansari, M. (2015). A Study Of Stock Price And Profitability Ratios In Tehran Stock Exchange (TSE). Research Gate.
Rizqia, D. A., & Sumiati, S. A. (2013). Effect of managerial ownership, financial leverage, profitability, firm size, and investment opportunity on dividend policy and firm value. Research Journal of Finance and Accounting, 4(11), 120-130.
Riyadi, R., & Fahtoni, A. F. (2014). Pengaruh reputasi underwriter, ukuran perusahaan, umur perusahaan, profitabilitas terhadap underpricing saham pada penawaran umum perdana (IPO) di Bursa Efek Indonesia (BEI) periode 2009-2012. Jurnal Online Mahasiswa (JOM) Bidang Ilmu Ekonomi, 1(1), 1-14.
Safitri, O. N. (2014). The Influence of Capital Structure And Profitability On Firm Value (A Study in Retail Companies Listed in Indonesia Stock Exchange 2010-2013 period). Jurnal Administrasi Bisnis, 13(2).
Setiadharma, S., & Machali, M. (2017). The effect of asset structure and firm size on firm value with capital structure as intervening variable. Journal of Business & Financial Affairs, 6(4), 1-5.
Sutrisno. (2012). Manajemen Keuangan Teori, Konsep dan Aplikasi. Jakarta: Literata Lintas Media.
The Indonesian Ministry of Industry. (2019). Manufacturing Industry Plays Crucial Role to boost Investment and Export, Retrieved January 17, 2019, from
https://kemenperin.go.id/artikel/20091/Industri-Manufaktur-Berperan-Penting-Genjot-Investasi-dan-Ekspor-
Trisnawati, R. (1998). Pengaruh Informasi Prospektus Terhadap Return Saham di Pasar Perdana (Doctoral dissertation, Universitas Gadjah Mada).
Yasuda, T. (2005). Firm growth, size, age and behavior in Japanese manufacturing. Small Business Economics, 24(1), 1-15.
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Published
2021-02-05
How to Cite
Lambey, R. (2021). The THE EFFECT OF PROFITABILITY, FIRM SIZE, EQUITY OWNERSHIP AND FIRM AGE ON FIRM VALUE (LEVERAGE BASIS): Evidence from the Indonesian Manufacturer Companies. Archives of Business Research, 9(1), 128–139. https://doi.org/10.14738/abr.91.9649
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