Journal of Management and Business Environment (JMBE)
Vol 1, No 2: January 2020

The Impact of Financial Performance, Financial Risk, Liquidity, and Corporate Governance on Corporate Value

Yunita Karlina (Soegijapranata Catholic University)
Andreas Lako (Soegijapranata Catholic University)



Article Info

Publish Date
17 Jan 2020

Abstract

The purpose of this study is to analyze the impact of financial performance, financial risk, liquidity, and corporate governance (CG) on the corporate value in the period t0 and t+1. The proxy for financial performance, financial risk, liquidity, and corporate governance is respectively return on equity (ROE), debt to assets ratio (DAR), current ratio (CR), and corporate governance perception index (CGPI). The proxy for corporate value is price to book value (PBV). The method for analysis data is multiple linear regression analysis. The results show that financial performance has positive impact on the corporate value in the period t0 and t+1 on one percent level of significance. However, financial risk and liquidity have positive impact on the corporate value in the period t0 and t+1 but the impact is not statistically significant. CG shows different impact on the corporate value in the period t0 and t+1 in which it indicates negative impact in the period t0 but positive impact in the periode t+1. The impacts are however statistically insignificant. Generally, the results indicate that financial performance is the main factor that increases corporate value.

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Journal Info

Abbrev

JMBE

Publisher

Subject

Decision Sciences, Operations Research & Management Economics, Econometrics & Finance Education Social Sciences Other

Description

The Journal of Management and Business Environment (JMBE) is a blind-review journal that is published by Magister Management, Soegijapranata Catholic University, Semarang, Indonesia. The journal is intended to provide forums for academicians and practitioners to disseminating relevant, high quality ...