Open AccessThe Determinants of Firm Value and Financial Performance in Islamic Stocks
Author(s) -
Salma Khoirunnisaa Arribaat
Publication year - 2021
Publication title -
equilibrium
Language(s) - English
Resource type - Journals
eISSN - 2502-8316
pISSN - 2355-0228
DOI - 10.21043/equilibrium.v9i1.9307
Subject(s) - debt to equity ratio , business , intellectual capital , nonprobability sampling , index (typography) , corporate governance , panel data , book value , enterprise value , islam , equity (law) , debt ratio , return on equity , equity ratio , finance , accounting , debt , economics , stock exchange , econometrics , population , philosophy , demography , theology , earnings , sociology , world wide web , computer science , political science , law
One of the company's long-term goals is to maximize the firm value. It is the present value of the company, which can be a prospect in the future. Therefore, the problem in this study is the factors that affect the company's value in the Jakarta Islamic Index for 2015-2019. This study analyzes the influence of Intellectual Capital, Good Corporate Governance, and Debt to Equity Ratio on Firm Value directly and indirectly through Financial Performance. The data used in this study is panel data using purposive sampling, and there are 17 stocks listed on the Jakarta Islamic Index for 2015-2019 period. The analysis technique of this research is Partial Least Square. The test results of the direct effect show that Intellectual Capital, Debt to Equity Ratio, and Financial Performance have a significant impact on Firm Value on the Jakarta Islamic Index. Corporate governance has a substantial effect on Financial Performance. Meanwhile, indirect testing proves that the Financial Performance variable can only mediate the impact of Corporate Governance on Firm Value. However, it cannot mediate between the relationship between the variable intellectual capital and debt ratio to equity.