Open Accesseffect of cash holding, profitability, and financial leverage on firm value with earnings management as moderating variables in manufacturing companies listed on the Indonesia stock exchange
Author(s) -
Doddy Irawan,
Marlina Widiyanti,
Luk Luk Fuadah,
Mohamad Adam
Publication year - 2022
Publication title -
international journal of business, economics and management
Language(s) - English
Resource type - Journals
ISSN - 2632-9476
DOI - 10.21744/ijbem.v5n1.1842
Subject(s) - stock exchange , business , profitability index , return on assets , enterprise value , leverage (statistics) , earnings management , debt to equity ratio , earnings per share , return on equity , debt ratio , working capital , finance , financial system , earnings , debt , population , demography , machine learning , sociology , computer science , nonprobability sampling
This study aims to determine the effect of cash holding, profitability (ROA), financial leverage (DER) on firm value (PBV) with earnings management as a moderating variable in manufacturing companies listed on the Indonesia Stock Exchange. The sample of this research is 24 companies in the manufacturing sector with a research period from 2015-2020. The data analysis technique used in this study is moderated regression analysis (MRA). The results showed that cash holding and earnings management did not affect firm value (PBV). Profitability, as measured by return on assets (ROA) and financial leverage as measured by debt to equity ratio (DER), has a significant positive effect on firm value (PBV). The results also conclude that earnings management does not have a moderating role in the effect of cash holding, profitability (ROA), financial leverage (DER) on firm value (PBV).