Profitability Factor in Boosting the Company’s Value During Pandemic Spreads

DOI

10.2991/aisr.k.220201.014How to use a DOI?

Keywords

profitability; company value; manufacturing companies

Abstract

This paper aims to determine how to increase the food value and beverage companies’ stock or companies during a pandemic. The five research variables are liquidity, working capital turnover, firm size, profitability, and firm value, where profitability as a moderating factor in determining firm value. This study examines 23 beverage and food companies publicly traded on the Indonesian Stock Exchange. The research sample includes 13 companies and 130 pieces of data spanning 2011 to 2020. As an analytical tool, the data processing method makes use of the WarpPLS application version 5.5. The study’s findings indicate that liquidity, working capital turnover, and firm size have a significant negative impact on profitability. Profitability has a significant positive effect on the value of a business, whereas other variables do not affect the value of a business. This means that profitability cannot act as a moderating factor in enhancing firm value. The purpose of this study is to make recommendations based on the company’s desire to generate profits to increase the company’s value or stock market prices.

Copyright

© 2022 The Authors. Published by Atlantis Press International B.V.

Open Access

This is an open access article under the CC BY-NC license.

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TY  - CONF
AU  - Dian Prawitasari
AU  - Ana Kadarningsih
PY  - 2022
DA  - 2022/02/02
TI  - Profitability Factor in Boosting the Company’s Value During Pandemic Spreads
BT  - Proceedings of the 2nd International Conference on Industry 4.0 and Artificial Intelligence (ICIAI 2021)
PB  - Atlantis Press
SP  - 73
EP  - 77
SN  - 1951-6851
UR  - https://doi.org/10.2991/aisr.k.220201.014
DO  - 10.2991/aisr.k.220201.014
ID  - Prawitasari2022
ER  -