Research Article
Effect of Return on Assets on Firm Value Using Zakat as the Moderating Variable
@INPROCEEDINGS{10.4108/eai.25-10-2019.2300540, author={Dien Triana and Andi Nurul Istiyana and Azwar Anwar and Rasyidah Nadir}, title={Effect of Return on Assets on Firm Value Using Zakat as the Moderating Variable}, proceedings={Proceedings of the 1st International Conference on Environmental Governance, ICONEG 2019, 25-26 October 2019, Makassar, South Sulawesi, Indonesia}, publisher={EAI}, proceedings_a={ICONEG}, year={2020}, month={10}, keywords={roa firm value zakat}, doi={10.4108/eai.25-10-2019.2300540} }- Dien Triana
Andi Nurul Istiyana
Azwar Anwar
Rasyidah Nadir
Year: 2020
Effect of Return on Assets on Firm Value Using Zakat as the Moderating Variable
ICONEG
EAI
DOI: 10.4108/eai.25-10-2019.2300540
Abstract
This research aims to test the effect of Return on Assets (ROA) on firm value by using zakat as the moderating variable. Some previous studies used other variables as moderating variable. So far, there is no research yet uses zakat as a moderating variable.The population of this study is all companies listed in the Malaysian Stock Exchange (MSE). The sampling technique used purposive sampling. The samples had to have zakat payment for 5 years. The obtained data were tested using multiple linear regression model and interaction test of Moderate Regression Analysis. The control variables used are Leverage and Market to Book Value of Assets against Firm Value Variable. The results showed that the ROA variable had a significant positive effect on the firm value (Tobin’s Q), while using zakat as moderation variable, ROA has no significant positive effect on the firm value.
