Research Article
The Effect of Financial Distress, Capital Structure, and Firm Size on The Firm Value of Property Companies Listed in Indonesia Stock Exchange 2016-2020
@INPROCEEDINGS{10.4108/eai.31-3-2022.2321087, author={Astri Yana and Elan Nurhadi Purwanto}, title={The Effect of Financial Distress, Capital Structure, and Firm Size on The Firm Value of Property Companies Listed in Indonesia Stock Exchange 2016-2020}, proceedings={Proceedings of the 1st International Conference on Contemporary Risk Studies, ICONIC-RS 2022, 31 March-1 April 2022, South Jakarta, DKI Jakarta, Indonesia}, publisher={EAI}, proceedings_a={ICONIC-RS}, year={2022}, month={8}, keywords={financial distress capital structure firm size firm value property}, doi={10.4108/eai.31-3-2022.2321087} }- Astri Yana
Elan Nurhadi Purwanto
Year: 2022
The Effect of Financial Distress, Capital Structure, and Firm Size on The Firm Value of Property Companies Listed in Indonesia Stock Exchange 2016-2020
ICONIC-RS
EAI
DOI: 10.4108/eai.31-3-2022.2321087
Abstract
The property sector is one of the parameters of the country’s progression besides infrastructure and industrial development. However, in the last few years, there has been a fluctuation in economic growth with the largest contraction -2,07% in 2020. The study aims to examine the effect of financial distress, capital structure, and firm size on the firm value of property companies listed in the Indonesia Stock Exchange 2016-2020. The sample is determined by the purposive sampling method. The Data collection is using documentation technique from the annual financial statement published by the website of the Indonesia stock exchange. The methods of data analysis are using a descriptive statistic, classic assumption test, and multiple linear regression analysis tests. The number of the samples are 19 companies. The result found that there are a positive and significant effect of financial distress and capital structure on the firm value. Negative and no significant effect of firm size on the firm value. The simultaneous relationship shows a significant effect on the firm value. The model is explained by a 61,6% variation on the firm value. This study shows that financial distress and capital structure is important factor in determining the firm value.