JAM : Jurnal Aplikasi Manajemen
Vol 19, No 2 (2021)

FIRM VALUE: PRICE EARNING GROWTH DETERMINATION IN AGRICULTURAL SECTOR COMPANIES

Ali Jamaludin (Department of Management Science, Faculty of Economics and Management (FEM) Bogor Agricultural University (IPB) Postgraduate Program)
Budi Purwanto (Department of Management Science, Faculty of Economics and Management (FEM) Bogor Agricultural University (IPB) Postgraduate Program)
Wita Juwita Ermawati (Department of Management Science, Faculty of Economics and Management (FEM) Bogor Agricultural University (IPB) Postgraduate Program)



Article Info

Publish Date
29 May 2021

Abstract

This study analyzes firm value with several variables that determine the high and low firm value. The ratios used in measuring firm value are price earnings growth (PEG) and price-earnings ratio (PER). In addition, in this study, PER served as a mediating variable and a comparison PEG in describing a true firm value. The samples obtained were 17 agricultural sector companies listed on the IDX for five years of observation from 2015 to 2019. The analytical methods used were RMSE, panel data regression, and path analysis. This research found that PEG is better at describing a firm’s true value than PER. In addition, this study also found that the variable current ratio and debt to total capitalization ratio do not affect PEG. Meanwhile, the variable return on equity affects PEG. Next, the variable current ratio, debt to total capitalization ratio, and return on equity affect PEG after being mediated through PER. The return on equity is the determining variable in influencing the high and low PEG values. Further PEG research can be carried out on companies with high-risk characteristics such as banking, mining, property, real estate, construction, and buildings.

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Journal Info

Abbrev

jam

Publisher

Subject

Decision Sciences, Operations Research & Management

Description

Jurnal Aplikasi Manajemen - Journal of Applied Management (JAM) publishes all forms of quantitative and qualitative research articles and other scientific studies related to the field of functional management (marketing, finance, human resources, and operations) as well as the applied management and ...