Effect of Working Capital and Financial Aspects to Firm Value: an Empirical Study on Indonesian Listed Firms

DOI

10.2991/apbec-18.2019.54How to use a DOI?

Keywords

Working Capital, Financial Aspects, Firm Value

Abstract

Working capital management and financial aspects are important for increasing the value of a firm. Adjustments to the leverage, profitability/asset utilization, and growth of the company will affect firm value. The study was conducted on 167 non-financial companies listed on the Indonesia Stock Exchange in the period 2007–2016 using panel data analyzed using linear model regression with firm size as the control. The results show working capital, represented by the Net Trade Cycle, has a significant negative relationship to firm value. Meanwhile, the financial aspects show a significant positive relationship for leverage and profitability to firm value while sales growth has no significant effect on firm value.

Copyright

© 2019, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Arthur Sianipar
AU  - Ruslan Prijadi
PY  - 2019/07
DA  - 2019/07
TI  - Effect of Working Capital and Financial Aspects to Firm Value: an Empirical Study on Indonesian Listed Firms
BT  - Proceedings of the Asia Pacific Business and Economics Conference (APBEC 2018)
PB  - Atlantis Press
SP  - 388
EP  - 393
SN  - 2352-5428
UR  - https://doi.org/10.2991/apbec-18.2019.54
DO  - 10.2991/apbec-18.2019.54
ID  - Sianipar2019/07
ER  -