Proceedings of the 1st International Conference on Economics, Management, Accounting and Business, ICEMAB 2018, 8-9 October 2018, Medan, North Sumatra, Indonesia

Research Article

The Factors that Influence on Firm Value and Company Performance as Mediation Variables (Study Manufacturing Companies period 2015-2017)

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  • @INPROCEEDINGS{10.4108/eai.8-10-2018.2288692,
        author={Fatmasari  Sukesti and Ery  Wibowo and Amanda Erica Prakasiwi},
        title={The Factors that Influence on Firm Value and Company Performance as Mediation Variables (Study Manufacturing Companies period 2015-2017)},
        proceedings={Proceedings of the 1st International Conference on Economics, Management, Accounting and Business, ICEMAB 2018, 8-9 October 2018, Medan, North Sumatra, Indonesia},
        publisher={EAI},
        proceedings_a={ICEMAB},
        year={2019},
        month={10},
        keywords={the firm value leverage size company performance},
        doi={10.4108/eai.8-10-2018.2288692}
    }
    
  • Fatmasari Sukesti
    Ery Wibowo
    Amanda Erica Prakasiwi
    Year: 2019
    The Factors that Influence on Firm Value and Company Performance as Mediation Variables (Study Manufacturing Companies period 2015-2017)
    ICEMAB
    EAI
    DOI: 10.4108/eai.8-10-2018.2288692
Fatmasari Sukesti1,*, Ery Wibowo1, Amanda Erica Prakasiwi1
  • 1: Faculty of Economic, University of Muhammadiyah Semarang, Jl. Kedungmundu Raya 18A Semarang, Indonesia.
*Contact email: fatmasaris@yahoo.com

Abstract

This study examined the influence of Leverage and Size on Firm Value that was measured by Price to Book Value and Company Performance that measured by Return on Assets as a mediating variable. The sample of this study used 60 manufacturing companies listed on Indonesian Stock Exchange period 2015-2017. This study was tested using Warp Partial Least Square program to prove the hypothesis proposed. The results showed that Leverage had no effect on Return on Assets and had a significant positive effect on Price to Book Value. Meanwhile Size had a significant positive effect on Return on Assets but it did not have a direct effect on Price to Book Value. Returrn on Assets had a positif and significant effect on Price to Book Value. Return on Assets did not act as a mediating variable in the relationship between Leverage and Price to Book Value, but in the Size and Price to Book Value relationship, the Return on Assets variable act as a mediating variable.