The Effect of Solvency, Profitability, and Working Capital on Firm Value: Case Studies on Industrial Companies in IDX 2015-2019

  • Andini Nurwulandari Universitas Nasional, Jakarta, Indonesia
DOI: https://doi.org/10.54783/ijsoc.v2i3.332
Keywords: Solvency, Profitability, Working Capital, Firm Value, Influence.

Abstract

The publication of the financial statements (issuers) of the company is a time waiting for investors in the capital market, as investors will find out the progress of issuance, as a consideration for purchasing or selling their own shares, when publishing these financial reporting statements. This research uses quantitative techniques with descriptive interpretation. Data sources include company-owned financial data reports collected from the IDX and published online, as well as conducting library analysis by collecting data from the writing of related books and journals. The type of data used in the study is secondary data from 2015-2019 which was collected through a purposive sampling process. Statistical Descriptive Analysis and Mulicollinearity Test. From this research, it can be seen that the rate of working capital turnover, solvency and capital structure affect firm value, while profitability does not affect firm value.

References

Adnyana, M., & Nurwulandari, A. (2020). Empirical examination of intersectoral linkages between tourism and regional economy by using the social accounting matrix.

Bisman., Hamdi, M., Jaenuri, A., & Kusworo. (2019). Pengaruh Partisipasi Masyarakat dan Kinerja Pengelola terhadap Kualitas Pelayanan Penyediaan Sarana Air Minum dan Sanitasi Berbasis Masyarakat di Kabupaten Rokan Hulu. Papatung: Jurnal Ilmu Administrasi Publik, Pemerintahan dan Politik, 2(3), 1-18.

Eri, N., & Riyan, A. (2020). Bauran Pemasaran (Product, Price, dan Place) Pada Analisis Gisty Hijab Olshop. AKSELERASI: Jurnal Ilmiah Nasional, 2(3), 1-16.

Kaddumi, T. A., & Ramadan, I. Z. (2012). Profitability and working capital management: The Jordanian case. International Journal of Economics and Finance, 4(4), 217-226.

Khidmat, W., & Rehman, M. (2014). Impact of liquidity & solvency on profitability chemical sector of Pakistan. Economics management innovation, 6(3), 34-67.

Maarif, S., Sardjono, T. W., & Utami, Y. W. (2020). National Early Warning Score Parameters at the Emergency Department as In Hospital Cardiac Arrest Predictors. International Journal of Science and Society, 2(4), 1-9.

Mawaddah, T., & Nurwulandari, A. (2019). Pengaruh Indeks KLCI, STI, SET dan PSEI (Intergasi AFTA) Terhadap IHSG. Oikonomia: Jurnal Manajemen, 14(2).

Mohamad, N. E. A. B., & Saad, N. B. M. (2010). Working capital management: The effect of market valuation and profitability in Malaysia. International journal of Business and Management, 5(11), 140.

Noer, M., Saribanon, N., & Nurwulandari, A. (2017). Business Model Analysis of Natural Production Forest with Sustainable Forest Management Approach. Geografia-Malaysian Journal of Society and Space, 13(1).

Nurwulandari, A., & Darwin, M. (2020). Heywood Case Data Statistik Menggunakan teknik Respesifikasi Model. Nucleus, 1(2), 74-84.

Padachi, K. (2006). Trends in working capital management and its impact on firms’ performance: an analysis of Mauritian small manufacturing firms. International Review of business research papers, 2(2), 45-58.

Panigrahi, C. M. A. (2014). Relationship of working capital with liquidity, profitability and solvency: a case study of ACC Limited. Asian journal of management research, 4(2), 308-322.

Prabowo, H. R. J., & Yolanda, S. F. (2020). Analysis of the Leading Sector and the Effect to Regional Minimum Wage (UMSK): A Case Study in Cimahi City, Indonesia. ENDLESS: International Journal of Future Studies, 3(2), 64-96.

Putri, E., & Nurwulandari, A. (2020). Analisis reaksi Pasar Modal Bagi Perusahaan Dalam index IDX30 terhadap Kemenangan Donald Trump Pada Pemilihan Presiden Amerika Serikat. Oikonomia: Jurnal Manejemen, 15(2).

Singh, J. P., & Pandey, S. (2008). Impact of Working Capital Management in the Profitability of Hindalco Industries Limited. ICFAI Journal of Financial Economics, 6(4).

Singh, K., & Asress, F. C. (2011). Determining working capital solvency level and its effect on profitability in selected Indian manufacturing firms. International Journal of Research in Commerce, Economics & Management.

Wilis, R. A., & Nurwulandari, A. (2020). The effect of E-Service Quality, E-Trust, Price and Brand Image Towards E-Satisfaction and Its Impact on E-Loyalty of Traveloka's Customer. Jurnal Ilmiah MEA (Manajemen, Ekonomi, & Akuntansi), 4(3), 1061-1099.

Published
2020-09-25
How to Cite
Nurwulandari, A. (2020). The Effect of Solvency, Profitability, and Working Capital on Firm Value: Case Studies on Industrial Companies in IDX 2015-2019. International Journal of Science and Society, 2(3), 356-363. https://doi.org/10.54783/ijsoc.v2i3.332
Issue
Vol 2 No 3 (2020): International Journal of Science and Society (IJSOC)
Section
Articles

Copyright (c) 2020 International Journal of Science and Society

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.

Ownership of copyright
The copyright in this website and the material on this website (including without limitation the text, computer code, artwork, photographs, images, music, audio material, video material and audio-visual material on this website) is owned by IJSOC and its licensors.
 
Copyright license
IJSOC grants to you a worldwide non-exclusive royalty-free revocable license to:
   - view this website and the material on this website on a computer or mobile device via a web browser;
   - copy and store this website and the material on this website in your web browser cache memory; and
   - print pages from this website for your  use.
   - All articles published by Academic Journals are licensed under the Creative Commons Attribution 4.0 International License. This permits anyone to copy, redistribute, remix, transmit and adapt the work provided the original work and source is appropriately cited.
IJSOC does not grant you any other rights in relation to this website or the material on this website.   In other words, all other rights are reserved.
For the avoidance of doubt, you must not adapt, edit, change, transform, publish, republish, distribute, redistribute, broadcast, rebroadcast or show or play in public this website or the material on this website (in any form or media) without  appropriately and conspicuously citing the original work and source or ACADEMIC JOURNALS prior written permission.  
 
Permissions
You may request permission to use the copyright materials on this website by writing to compliance@ijsoc.goacademica.com.
 
Enforcement of copyright
IJSOC takes the protection of its copyright very seriously.
 
If IJSOC discovers that you have used its copyright materials in contravention of the license above, IJSOC may bring legal proceedings against you seeking monetary damages and an injunction to stop you using those materials.  You could also be ordered to pay legal costs.
 
If you become aware of any use of IJSOC' copyright materials that contravenes or may contravene the license above, please report this by email to Compliance@ijsoc.goacademica.com.
 
Infringing material
If you become aware of any material on the website that you believe infringes your or any other person's copyright, please report this by email to Compliance@ijsoc.goacademica.com.