IDEAS home Printed from https://ideas.repec.org/a/ers/journl/vxxy2017i2ap443-460.html
   My bibliography  Save this article

Financial Performance towards Value of Firms in Basic and Chemicals Industry

Author

Listed:
  • P. Purwanto
  • Jillian Agustin

Abstract

This research aims to empirically prove the significant influences of financial performance towards value of firm. This research chose the population in basic and chemicals industry during the period of 2009-2014.Through purposive sampling and panel data, this research had 60 observations which was obtained through each firm. This research adopted quantitative research with random effect model, which used some analysis methods of descriptive analysis, classical assumption, multiple regression analysis and hypotheses testing.The result was concluded that firm size, earnings growth, current ratio, DER and ROA had partial significant influences towards PBV. Simultaneously, those five independent variables provided 66.594% influences while the rest 33.406% was influenced by other factors. Moreover, firm size was chosen as the most significant factor which influences price to book value.

Suggested Citation

  • P. Purwanto & Jillian Agustin, 2017. "Financial Performance towards Value of Firms in Basic and Chemicals Industry," European Research Studies Journal, European Research Studies Journal, vol. 0(2A), pages 443-460.
    • Handle: RePEc:ers:journl:v:xx:y:2017:i:2a:p:443-460
    as

    Download full text from publisher

    File URL: http://www.ersj.eu/repec/ers/papers/17_2_A_p27.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Eleftherios Thalassinos & Erginbay Ugurlu & Yusuf Muratoglu, 2012. "Income Inequality and Inflation in the EU," European Research Studies Journal, European Research Studies Journal, vol. 0(1), pages 127-140.
    2. Sofya Glavina, 2015. "Influence of Globalization on the Regional Capital Markets and Consequences; Evidence from Warsaw Stock Exchange," European Research Studies Journal, European Research Studies Journal, vol. 0(2), pages 117-134.
    3. Ivalina Kalcheva & Karl V. Lins, 2007. "International Evidence on Cash Holdings and Expected Managerial Agency Problems," The Review of Financial Studies, Society for Financial Studies, vol. 20(4), pages 1087-1112.
    4. Besnik Fetai, 2015. "Financial Integration and Financial Development: Does Financial Integration Matter?," European Research Studies Journal, European Research Studies Journal, vol. 0(2), pages 97-106.
    5. Erginbay Ugurlu & Eleftherios Thalassinos & Yusuf Muratoglu, 2014. "Modeling Volatility in the Stock Markets using GARCH Models: European Emerging Economies and Turkey," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(3), pages 72-87.
    6. Eleftherios Thalassinos, 2008. "Trends and Developments in the European Financial Sector," European Financial and Accounting Journal, Prague University of Economics and Business, vol. 2008(3), pages 44-61.
    7. Sri Hermuningsih, 2013. "Pengaruh Profitabilitas, Growth Opportunity, Struktur Modal Terhadap Nilai Perusahaan Pada Perusahaan Publik Di Indonesia," Bulletin of Monetary Economics and Banking, Bank Indonesia, vol. 16(2), pages 1-22, October.
    8. Merton H. Miller & Franco Modigliani, 1961. "Dividend Policy, Growth, and the Valuation of Shares," The Journal of Business, University of Chicago Press, vol. 34, pages 411-411.
    9. Ramona Rupeika-Apoga & Roberts Nedovis, 2015. "The Foreign Exchange Exposure of Non-Financial Companies in Eurozone: Myth or Reality?," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(1), pages 54-66.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Bambang Sudiyatno & Elen Puspitasari & Ida Nurhayati & Tristiana Rijanti, 2021. "The Relationship Between Profitability and Firm Value: Evidence From Manufacturing Industry in Indonesia," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 12(3), pages 466-476, May.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Andrei V. Vlasov, 2017. "The Evolution of E-Money," European Research Studies Journal, European Research Studies Journal, vol. 0(1), pages 215-224.
    2. Nikolay Tikhomirov & Tatiana Tikhomirova & Eldar Khamitov & Vladimir Ponomarev, 2017. "Models of Assessment of the Influnce of Insurance Assets Securitization on Stability of Mutual Insurance Societies," European Research Studies Journal, European Research Studies Journal, vol. 0(2B), pages 321-333.
    3. Sugiharso Safuan, 2017. "Exchange Rate Volatility and Export Volume: The Case of Indonesia and its Main Trading Partners," European Research Studies Journal, European Research Studies Journal, vol. 0(3A), pages 3-13.
    4. Mustafa Raza Rabbani & Shahnawaz Khan & Eleftherios I. Thalassinos, 2020. "FinTech, Blockchain and Islamic Finance: An Extensive Literature Review," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(2), pages 65-86.
    5. Alzahrani, Mohammed & Lasfer, Meziane, 2012. "Investor protection, taxation, and dividends," Journal of Corporate Finance, Elsevier, vol. 18(4), pages 745-762.
    6. Aleksey V. Bogoviz & Yulia V. Ragulina & Vadim I. Erusalimsky & Yulia G. Tyurina & Elena V. Popova, 2017. "Evaluation of Economic Effectiveness of the State Purchases System: Criteria and Priorities," European Research Studies Journal, European Research Studies Journal, vol. 0(3B), pages 548-555.
    7. Paulo, Alves, 2018. "Abnormal retained earnings around the world," Journal of Multinational Financial Management, Elsevier, vol. 46(C), pages 63-74.
    8. Jiang, Fuxiu & Ma, Yunbiao & Shi, Beibei, 2017. "Stock liquidity and dividend payouts," Journal of Corporate Finance, Elsevier, vol. 42(C), pages 295-314.
    9. Albekov Adam Umarovich & Vovchenko Natalia Gennadyevna & Andreeva Olga Vladimirovna & Sichev Roman Alexandrovich, 2017. "Block Chain and Financial Controlling in the System of Technological Provision of Large Corporations," European Research Studies Journal, European Research Studies Journal, vol. 0(3B), pages 3-12.
    10. He, Wen & Zhang, Feida, 2022. "Languages and dividends," The British Accounting Review, Elsevier, vol. 54(6).
    11. M.A. Surzhikov & A.A. Sycheva, 2017. "Process Approach to Modeling of National and Global Securities Market Operation," European Research Studies Journal, European Research Studies Journal, vol. 0(3B), pages 84-91.
    12. Simon Grima & Inna Romanova & Frank Bezzina & Frank Chetcuti Dimech, 2016. "Alternative Investment Fund Managers Directive and its Impact on Malta’s Financial Service Industry," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(1), pages 70-85.
    13. Natalia G. Vovchenko & Evgeniy N. Tishchenko & Tatiana V. Epifanova & Mark B. Gontmacher, 2017. "Electronic Currency: The Potential Risks to National Security and Methods to Minimize Them," European Research Studies Journal, European Research Studies Journal, vol. 0(1), pages 36-48.
    14. Constantin Zaman & Bogdan Meunier, 2017. "A Decade of EU Membership: Evolution of Competitiveness in Romania," European Research Studies Journal, European Research Studies Journal, vol. 0(2A), pages 224-236.
    15. Nikolai Vasilevich Lyasnikov & Evgeniya Evgenevna Frolova & Andrei Alievich Mamedov & Sergei Borisovich Zinkovskii & Natalya Andreevna Voikova, 2017. "Venture Capital Financing as a Mechanism for Impelling Innovation Activity," European Research Studies Journal, European Research Studies Journal, vol. 0(2B), pages 111-122.
    16. Peter J Baldacchino & Rosalene Caruana & Simon Grima & Frank H. Bezzina, 2017. "Selected Behavioural Factors in Client-Initiated Auditor Changes: The Client-Auditor Perspectives," European Research Studies Journal, European Research Studies Journal, vol. 0(2A), pages 16-47.
    17. Alexandru Trifu, 2013. "A Microeconomic Approach of a Company’s in a Competitive Environment," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(2), pages 115-124.
    18. Jullie Jeanette Sondakh, 2017. "Behavioral Intention to Use E-Tax Service System: An Application of Technology Acceptance Model," European Research Studies Journal, European Research Studies Journal, vol. 0(2A), pages 48-64.
    19. Karpavičius, Sigitas & Yu, Fan, 2018. "Dividend premium: Are dividend-paying stocks worth more?," International Review of Financial Analysis, Elsevier, vol. 56(C), pages 112-126.
    20. Theodore Katsanevas, 2016. "Currency Wars, Recession Policies and the Overvalued Euro are to be Blamed for the Modern Greek Tragedy," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(1), pages 3-19.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ers:journl:v:xx:y:2017:i:2a:p:443-460. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Marios Agiomavritis (email available below). General contact details of provider: https://ersj.eu/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.