The Effect of Financial Ratio on Firm Value

• 발행기관: 한국유통과학회
• 저자명: Sakina ICHSANI Adinda Izlia Nurhalshaeni ZAENUDIN Gita Novia DAMAYANTI Vela TRESIA Via Apriliana PUTRI
• 간행물 정보: 『The Journal of Asian Finance, Economics and Business(JAFEB)』Vol. 8 No.6, 103~112쪽, 전체 10쪽
• 주제분류: 경제경영 > 경제학
• 파일형태: PDF
• 발행일자: 2021.06.30

영문 초록

This study aims to analyze the effect of Cash Ratio, Total Asset Turnover, Net Profit Margin, and the Earning Per Share on Price Book Value. Firm value is especially critical to investors since it represents the true value of the company. The population of this study is 44 companies registered on the Indonesia Stock Exchange-30 (IDX30) during the 2015–2019 period. The sampling technique used is the purposive sampling method and 11 companies were chosen as the sample. This research uses the descriptive quantitative method and the multiple regression test to determine the relationship between variables. The results show that the Cash Ratio, Total Asset Turnover, Net Profit Margin, and Earning Per Share simultaneously explain 64.5% of the variance in Price Book Value. The cash ratio has no effect on Price Book Value, Total Asset Turnover has a positive and significant effect on Price Book Value, Net Profit Margin has a positive and significant effect on Price Book Value, and Earning Per Share has no effect on Price Book Value. Every company needs to keep track of its assets. That way, its stakeholders will know which assets are available to be employed to provide optimal returns, and it is necessary to pay attention to good financial ratios to obtain increased company value.

목차

1. Introduction

2. Literature Review

3. Research Method

4. Results

5. Discussion

6. Conclusion

키워드

Cash Ratio Total Asset Turnover Net Profit Margin Earning Per Share Price Book Value