Management’s Company Value Based Capital Structure, Liquidity Ratio, Coverage, Activity through Financial Performance

DOI

10.2991/978-94-6463-346-7_2How to use a DOI?

Keywords

Activity Ratio; Capital Structure; Coverage; Financial Performance; Liquidity

Abstract

Encouraging performance synonymous with an increase in company value. Because this is the same as achieving the company’s primary objective, maximizing company value is crucial for a business. Increasing the value of firm accomplishments in line with owner wishes since owner welfare will be ensured automatically. Investors’ assessment of a company’s success level, is frequently linked to stock prices. A high stock price is a sign of a valuable corporation. The purpose of this research is to explore and analyze how capital structure, liquidity ratios, coverage, and activity are related to financial performance and firm value. It also demonstrates the importance of financial performance as a mediator between these factors and firm value. Out of 16 automotive firms, a total of 13 are listed on the Indonesia Stock Exchange from 2018 to 2021. Using path analysis for hypothesis testing, Sobel test for mediation hypothesis testing. Results showed only financial performance had an impact on the firm’s worth, coverage ratio had an impact on financial results. The financial performance was unable to mediate the relationship between capital structure, liquidity, coverage, activity ratio, and firm value. A novelty study compares two states, particularly those before and after the Covid-19 epidemic.

Copyright

© 2023 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Ainun Jariah
AU  - Sukma Irdiana
AU  - Ninik Lukiana
PY  - 2024
DA  - 2024/01/11
TI  - Management’s Company Value Based Capital Structure, Liquidity Ratio, Coverage, Activity through Financial Performance
BT  - Proceedings of the Conference on SDGs Transformation through the Creative Economy: Encouraging Innovation and Sustainability (TCEEIS 2023)
PB  - Atlantis Press
SP  - 3
EP  - 9
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-346-7_2
DO  - 10.2991/978-94-6463-346-7_2
ID  - Jariah2024
ER  -