Research Paper
Year: 2021 | Month: August | Volume: 8 | Issue: 8 | Pages: 559-567
DOI: https://doi.org/10.52403/ijrr.20210875
The Effect of Total Asset Turnover and Profitability on Firm value With Good Corporate Governance as Moderating Variable in Food and Beverage Subsector Manufacturing Companies Listed on the IDX 2010-2019
Isnartik Bama1, Azhar Maksum1, Abdhy Aulia Adnans1
1Department of Accounting, Faculty of Economics and Business at Universitas Sumatera Utara, Indonesia
Corresponding Author: Isnartik Bama
ABSTRACT
The success rate of the company is often associated with stock prices. High stock prices will impact increasing the value of the company and increasing market confidence. This study aims to analyze the effect of total asset turnover and profitability on firm value in food and beverage companies listed on the Indonesia Stock Exchange for the 2010-2019 period. This study will also examine the good corporate governance variable used as a moderating variable in the research model.
The population is food and beverage companies listed on the Indonesia Stock Exchange for 2010 – 2019. From this population, 26 selected companies became the research sample, as many as 14 companies. Moreover, the number of observations used were 140 observations. The data type used is secondary data and the data analysis technique used in Panel Data Regression Analysis and Interaction Moderating Test with the help of EViews10 software.
The results of this study indicate that the alpha 5% profitability has a positive and significant influence on firm value. Meanwhile, total asset turnover has a positive but not significant effect on firm value. This study also indicates that good corporate governance can strengthen the influence of profitability on firm value. However, good corporate governance cannot moderate the effect of total asset turnover on firm value.
Keywords: total asset turnover, profitability, firm value and good corporate governance.
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