This study aims to examine the effect of liquidity, activity, leverage, and profitability on firm value, as well as the effect of disclosure of corporate social responsibility (CSR), which in this study is a moderator and company size as a control variable. The sampling technique used in this study is a purposive sampling method with certain criteria, to obtain a sample of 22 LQ45 index companies listed on the Indonesia Stock Exchange in 2014–2019. The data analysis method in this study used was the Multiple Linear Regression Analysis with the SPSS 18 Program. The results show that the ratios of liquidity, activity, leverage, and profitability are significant to firm value in accordance with the initial hypothesis of the study. Corporate Social Responsibility (CSR) plays a role as a moderating variable and company size variable as a control variable on the effect of financial ratios (liquidity, activity, leverage, and profitability) on firm value. The implication of this research is that CSR has a very important role in increasing company value. To attract more investors, companies must pay attention not only to financial performance but also to social performance. Large-scale companies tend to do more CSR so that the company value will increase.

https://www.koreascience.or.kr:443/article/JAKO202106438543370.pdf

The Effect of Liquidity, Leverage, and Profitability on Firm Value: Empirical Evidence from Indonesia

In the last few years, there is growing interest in the field of simultaneous equation estimation in finance due to the endogeneity problem caused by measurement errors, simultaneity, or omitted variables. This study aims to discuss the endogeneity problem in corporate financing decisions and investigate the interrelationship of financial decision-making such as investment decision, dividend decision, and external financing decision in Pakistan Stock Exchange (PSX) using two-stage least squares (2SLS) and generalized method of moment (GMM) estimation. The Bruech-Pagan test shows that the data has no heteroskedasticity issue and 2SLS is a better approach in the context of this study as compared to the GMM approach, and internal instruments are also sufficiently strong and valid. The three financial decisionmaking attributes are not jointly determined, and the dividend is influenced by one-sided investment. In the emerging stock market context, external financing and investment are not inter-related and did not affect each other. The question of whether the simultaneous equation estimation can be useful in the context of the emerging stock markets and newly-growing firms remains unanswered. The inclusive evidence shows that the theoretical link in the emerging stock market is difficult to prove like in developed stock markets.

https://www.koreascience.or.kr:443/article/JAKO202106438543160.pdf

Simultaneous Equation Estimation in Finance and Corporate Financial Decision: Empirical Evidence from Pakistan Stock Exchange

This study investigates the company value determinant by observing the effect of financial performance and Corporate Social Responsibility (CSR) and its role in moderating performance achievement. The macro-economy variables such as inflation and interest rate are also used as the controlling variable. This research employs the sample of manufacturing companies of the food and beverage sub-sector listed on the Indonesia Stock Exchange. This study used panel data from 2013 to 2017, with the moderating regression analysis. The result shows that the profitability of the current or previous period affects the company’s value. CSR and company size affect the company value at the next period shows that stock price, which reflects the investor’s perception today, will be affected by the CSR, Size, and Return On Asset of the previous year. CSR also shows that it can be the substitute for profitability since a company that performs CSR is the one that has a good performance. The regression moderating model and the profitability of the previous period have a higher explanatory power than the higher R square value in explaining company value.

https://www.koreascience.or.kr:443/article/JAKO202106438543771.pdf

The Role of Corporate Social Responsibility on the Relationship between Financial Performance and Company Value

The purpose of a company is to gain profits. The purpose of the present study was to examine the effects of current ratio and debt-to-equity ratio on return on asset and return on equity for companies of the food and noodle sub-sector. A total of 10 companies listed on the Indonesia Stock Exchange (ISX) was sampled from 2014 to 2017. Data were processed using the multiple linear regression analysis with SPSS 24. Results showed that current ratio and debt-to-equity ratio had a significant effect on return on equity and return on asset. Results of the regression coefficient analysis showed that current ratio and debt-to-equity ratio accounted for 14.9% of ROA, while the remaining 85.1% was explained by other variables, as indicated by the coefficient determinants. The regression coefficient analysis for ROE showed that 61.4% was explained by other variables not studied in this research. Results of the F-test showed a
significance value of 0.019 < 0.05 for ROA and 0.000 < 0.05 for ROE, meaning that both the current ratio
and debt-to-equity ratio had a significant effect on ROA and ROE in food and beverage industry companies listed in Indonesia Stock Exchange.

Effects Of Current Ratio And Debt-To-Equity Ratio On Return On Asset And Return On Equity

Environmental Performance and Environmental Disclosure: The Role of Financial Performance

The purpose of this study was to examine the role of profitability as a mediating variable in influencing firm value. This study uses a sample of manufacturing companies listed on the Indonesia Stock Exchange from 2016 to 2018. The data used is panel data, with data analysis using multiple regression. Based on the Sobel test, profitability plays a role in mediating the effect of firm size on firm value. The effect of firm size on firm value is indirect, however, through profitability. Therefore, the market price of the shares of large-scale companies will increase if the resulting profitability is high. The capital structure and managerial ownership directly influence firm value. The results showed that managerial ownership and firm size had a positive effect on profitability, while capital structure had no effect on profitability. Capital structure and managerial ownership have a negative effect on firm value, while firm size and profitability have a positive effect on firm value. The main finding of this study is that profitability acts as an intervening variable in mediating the relationship between firm size and firm value.

https://www.koreascience.or.kr:443/article/JAKO202032462597129.pdf

Maulana Muhammad Asyif

Papers

Determinants of Firm Value and Profitability: Evidence from Indonesia