Open Accesseffect of financial ratios on company value in oil and gas mining subsectors in Indonesia stock exchange
Author(s) -
Muhammad Ardian,
Mohammad Adam,
Marlina Widiyanti,
Isnurhadi Isnurhadi
Publication year - 2021
Publication title -
international journal of business, economics and management
Language(s) - English
Resource type - Journals
ISSN - 2632-9476
DOI - 10.31295/ijbem.v4n1.1025
Subject(s) - return on assets , return on equity , business , stock exchange , asset turnover , debt to equity ratio , return on capital employed , current ratio , finance , equity (law) , return on capital , enterprise value , net asset value , book value , panel data , economics , financial capital , human capital , econometrics , population , demography , capital formation , earnings , sociology , political science , law , economic growth , nonprobability sampling
Firm value is influenced by elements outside and within the organization. . They were selected by purposive examination technique. The examination procedure used is Panel Data Regression Analysis. The consequences of such examinations lead to the demonstration that Return on Equity has a substantial beneficial return on firm value, suggesting that return on capital through increased benefits will build financial support certainty. Conversely, the Debt to Asset Ratio has a critical negative impact on firm value. This implies that the use of extreme liabilities can sustain the business. Owners and top administrative organizations should be careful about the use of obligations. Operational productivity and expansion of the number of items must be the primary concern to build Return on Equity. Different factors, such as Asset Growth, Total Asset Turn Over, and Current Ratio, have no impact on firm value.