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The Influence of Financial Performance, Capital Structure and Macroeconomic Factors on Firm’s Value – Evidence from Textile Companies at Indonesia Stock Exchange
Applied Finance and Accounting
View Archive Info| Field | Value | |
| Title |
The Influence of Financial Performance, Capital Structure and Macroeconomic Factors on Firm’s Value – Evidence from Textile Companies at Indonesia Stock Exchange
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| Creator |
Jubaedah, Jubaedah
Yulivan, Ivan Abdul Hadi, Abdul Razak |
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| Description |
This study aims to investigate how financial performance, capital structure and macroeconomic factors may influence a firm’s value in Indonesia textile industry. This research is exploratory in nature involving 20 textile companies listed in Indonesia Stock Exchange (IDX). Using panel data regression, the results show that financial performance, capital structure, inflation and exchange rate are contributory factors that influence firm’s value. The better the financial performance of a company, the higher its value will be. The study also reveals that ratio of short term debt to total assets has no significant impact on firm’s value, while there is a positive significant relationship between the ratio of long term debt to total assets and firm’s value. Interestingly, depreciation in Indonesia Rupiah and increase in inflation rate would also enhance the firm’s value. As far as Indonesian textile industry is concerned, the findings suggest that capital structure, increased financial performance, higher inflation rate and depreciating Rupiah do influence the textile company’s value.
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| Publisher |
Redfame publishing
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| Contributor |
—
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| Date |
2016-02-23
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| Type |
info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion Peer-reviewed Article |
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| Format |
application/pdf
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| Identifier |
http://redfame.com/journal/index.php/afa/article/view/1403
10.11114/afa.v2i2.1403 |
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| Source |
Applied Finance and Accounting; Vol 2, No 2 (2016); 18-29
2374-2429 2374-2410 |
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| Language |
eng
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| Relation |
http://redfame.com/journal/index.php/afa/article/view/1403/1914
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