Universitas Bhayangkara Jakarta Raya

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permata, sari and Purwoko, Bambang and Widyastuti, Tri and Daito, Apollo (2022) Determination of Company’s Value: A Study with Investment Opportunity as a Moderator Variable. Journal of Economics, Finance and Management Studies, 5 (1). pp. 51-57. ISSN 2644-0504

Text A Published Paper_Determination of company value_1 januari 2022.pdf Download (893kB)

Abstract

This research focuses on the state of a company's valuation, which is always changing. The utilized variables to estimate firm value include free cash flow and interest rates, both of which have a positive relationship with company's value. The second purpose is to investigate the current situation of investment opportunities in industrial companies that are similarly highly volatile. The availability of free cash flow indicates the interest rate has a positive relationship with the investment opportunity set. An explanatory research design is used in this study, which aims to examine the correlation between variables. The manufacturing companies that were listed on the Indonesia Stock Exchange between 2013 and 2018 are the focus of this study. Thus, data were collected from 612 units using a purposive sampling technique. The findings reveal that whereas free cash flow has a strong positive indirect effect on company value via mediating the investment opportunity set, interest rates have a negative and minor indirect effect on firm value via mediating the investment opportunity set.

Item Type:	Article
Uncontrolled Keywords:	Firm Value, Investment Opportunity Set, Free Cash Flow, Interest Rate, Dividend Policy, Managerial Ownership
Subjects:	Ilmu Sosial > Ekonomi > Akuntansi
Divisions:	Fakultas Ekonomi dan Bisnis > Akuntansi
Depositing User:	Prof Tri Widyastuti
Date Deposited:	09 Nov 2023 09:48
Last Modified:	09 Nov 2023 09:48
URI:	http://repository.ubharajaya.ac.id/id/eprint/24188

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