Effect of Liquidity on Firm Value with Profitability as Intervening Variable (Case Study of Registered Banking on the Indonesia Stock Exchange)
Journal: International Journal of Science and Research (IJSR) (Vol.9, No. 7)Publication Date: 2020-07-05
Authors : Cahyo Pratomo; Augustina Kurniasih;
Page : 1071-1080
Keywords : Deposits; cash reserves; liquidity gap; non-performing loans; price earning ratio; profitability;
Abstract
This study aims to examine whether there is an influence of liquidity risk to the firm value using profitability as an intervening variable of banks in Indonesia. The sample used was a conventional commercial bank listed on the Indonesia Stock Exchange (IDX) in 2018. The number of samples in this study was 42 companies that have been selected in accordance with the purpose sampling method. This study uses path analysis with α = 5 % is used to test the research variables that deposits (DEPO), cash reserves (CASH), gap liquidity (GAPLIQ), and non-performing loan (NPL) on Firm Value (PER) with profitability (ROA) of the bank. The results from this research that there is a positive influence of deposits and the cash reserves have a positive effect but not significant, liquidity gap has a negative but not significant effect, and non-performing loan have a significant negative effect, and profitability has a significant positive effect on firm value of banks.
Other Latest Articles
- The Effects of Therapeutic Exercises on Physical Performance among Diabetic Older Individuals from Rural Population
- Biochar Application - A Strategy to Sustain Soil Microflora in Chillies (Capsicum frutescens L.)
- The Role of Local Government Authorities in Facilitating Community Participation for Small and Medium Tourism Enterprises Growth
- Assessment of Laryngoscope Decontamination Practices Followed by Anaesthetists of Rajasthan, India: An Online Survey
- The Role of Spatial Modelling in Understanding Impacts of Climate Change on Temperature Patterns in Kenya
Last modified: 2021-06-28 17:09:23