Corporate Values Policy: With ROA as an Intervening

M Firza Alpi, Ilham Ramadhan Nasution, Anggy Armanda Dalimunthe

Abstract


This study aims to examine the direct and indirect effects of Total Asset Turnover and Current Ratio on Firm Value with Return On Assets as Intervening Variables. The samples used in this study were all pharmaceutical companies listed on the Indonesia Stock Exchange (IDX) for the 2016-2020 period using a purposive sampling method. There are 8 pharmaceutical companies selected as samples. The data analysis method used is Path Analysis, where Path Analysis is a development of multiple linear regression. Based on the results of data analysis, it was found that TATO had no significant negative effect on Firm Value, CR had a significant positive effect and had a negative direction on Firm Value, ROA had no significant negative effect on Firm Value, TATO has no significant negative effect on ROA, CR has no significant negative effect on ROA. The results of the path analysis show that TATO has a significant negative effect on firm value with ROA as the intervening variable, and CR has a significant positive effect on firm value with ROA as the intervening variable.


Keywords


Total Asset Turnover, Current ratio, Return On Assets, Firm Value

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References


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DOI: https://doi.org/10.30596/miceb.v1i0.368

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