Impact of Financial Fundamentals on Firm Value: Evidence from Cosmetics and Household Goods Sector

Lala Ahlannisa; Zainal Zawir Simon; Dinda Oktavia

doi:10.58777/reb.v2i1.208

Authors

Lala Ahlannisa Faculty of Economics and Business, YARSI University, Jakarta
Zainal Zawir Simon Faculty of Economics and Business, YARSI University, Jakarta
Dinda Oktavia Faculty of Economics and Business, YARSI University, Jakarta

DOI:

https://doi.org/10.58777/reb.v2i1.208

Keywords:

Return On Assets, Current Ratio, Debt to Equity Ratio, Total Asset Turnove, Firm Value

Abstract

This study proposes to understand the influence of return on assets, current ratio, debt-to-equity ratio, and total asset turnover on firm value. The research method used is quantitative and uses secondary data, namely the corporate sub-sector cosmetics and household goods listed on the Indonesian Stock Exchange (IDX). The sample used is as many as 6 firms, period 2015-2020 through the purposive sampling method. The method of analysis of panel data. The results obtained in this study show that the simultaneous return on assets, current ratio, debt-to-equity ratio, and total asset turnover affect the firm value. A partial return on assets effect has a negative and significant impact on firm value, a current ratio effect has a positive and significant impact on firm value, a debt to equity ratio has no significant effect on firm value, and total asset turnover has a positive and significant effect on firm value. The managerial implication of these findings is the importance of management in optimizing the use of assets, maintaining healthy financial ratios, and managing the firm's capital structure wisely. Managers need to pay attention to these financial performance indicators of firm value.

References

Aggarwal, D., & Padhan, P. C. (2017). Impact of Capital Structure on Firm Value: Evidence from Indian Hospitality Industry. Theoretical Economics Letters, (0)7, 982–1000. https://doi.org/10.4236/tel.2017.74067

Aldo, S., & As’ari, H. (2023). The Effect of GCG and Leverage on Financial Performance: Evidence from Construction Firms. Research of Business and Management, 1(2), 84–94. https://doi.org/10.58777/rbm.v1i2.58

Ali, J., & Faroji, R. (2021). Pengaruh Profitabilitas Terhadap Nilai Perusahaan (Studi Empiris Pada Perusahaan Sektor Industri Barang Konsumsi Di Bursa Efek Indonesia Tahun 2017-2019). Jurnal Neraca Peradaban, 1(2), 128–135. https://doi.org/10.55182/jnp.v1i2.3

Ali, M. H., & Rusmana, D. (2021). Konsep Mubazir dalam Al-Qur’an: Studi Tafsir Maudhu’i. Jurnal Riset Agama, 1(3), 11–29. https://doi.org/10.15575/jra.v1i3.15065

Almira, N. P. A. K., & Wiagustini, N. L. P. (2020). Return on Asset, Return on Equity, Dan Earning Per Share Berpengaruh Terhadap Return Saham. E-Jurnal Manajemen Universitas Udayana, 9(3), 1069. https://doi.org/10.24843/ejmunud.2020.v09.i03.p13

Anggraini, D. (2019). Pengaruh Good Corporate Governance Terhadap Nilai Perusahaan Pada Perusahaan Textile, Garment yang Terdaftar di Bursa Efek Indonesia (BEI) Periode 2009-2012. Jurnal Akuntansi, 1(1), 1–17.

Astutik, D. (2017). Pengaruh Aktivitas Rasio Keuangan Terhadap Nilai Perusahaan (Studi Pada Industri Manufaktur). Jurnal Akuntansi. 9(1), 32–49.

Aziz, A., & Ramdansyah. (2020). Esensi Utang Dalam Konsep Ekonomi Islam. BISNIS : Jurnal Bisnis Dan Manajemen Islam, 4(1), 124–135. https://doi.org/10.21043/bisnis.v4i1.1689

Brigham, E. F., & Houston, J. (2018). Dasar-Dasar Manajemen Keuangan. Salemba Empat.

Brigham, E. F., & Houston, J. (2020). Dasar-Dasar Manajemen Keuangan. Salemba Empat.

Brigham, E. F., & Houston, J. F. (2017). Dasar-Dasar Manajemen Keuangan. Salemba Empat.

Budiantoro, R. A., Sasmita, R. N., & Widiastuti, T. (2018). Sistem Ekonomi (Islam) dan Pelarangan Riba dalam Perspektif Historis. Jurnal Ilmiah Ekonomi Islam, 4(01), 1. https://doi.org/10.29040/jiei.v4i1.138

Claude, R. (2018). Capital Structure, Organizational Determinants, and Financial Performance of Firms Registered in Rwanda Development Board. The International Journal of Business & Management, 4(8), 105–129. https://doi.org/10.23887/ijssb.v4i3.27958

Fadila Angraini. (2023). The Effect of Good Corporate Governance on Financial Distress. Research of Finance and Banking, 1(2), 73–84. https://doi.org/10.58777/rfb.v1i2.116

Fadillah, S. N., & Noormansyah, I. (2023). The Influence of Sustainability Report, Intellectual Capital, Liquidity, and Firm Size on Firm Value. Research of Finance and Banking, 1(1), 22–33. https://doi.org/10.58777/rfb.v1i1.33

Hantono. (2018). Konsep Analisa Laporan Keuangan dengan Pendekatan Rasio dan SPSS : CV.

Harahap, S. S. (2019). Analisis Kritis Atas Laporan Keuangan :Raja Grafindo Persada.

Harahap, S. S. (2020). Analisa Kritis atas Laporan Keuangan :Raja Grafindo Persada.

Haryati, W., & Ayem, S. (2019). Pengaruh Return On Assets, Debt To Equity Ratio, Dan Earning Per Share Terhadap Nilai Perusahaan (Studi Kasus Pada Perusahaan Food and Beverages Yang Terdaftar Di BEI Periode 2009-2011). Jurnal Akuntansi, 2(1), 43–55. https://doi.org/10.24964/ja.v2i1.23

Hery. (2017). Teori Akuntansi Pendekatan Konsep dan Analisis : Grasindo.

Hidayat, A. S., & Siradj, M. (2017). Sertifikasi Halal dan Sertifikasi Non Halal pada Produk Pangan Industri. AHKAM : Jurnal Ilmu Syariah, 15(2), 199–210. https://doi.org/10.15408/ajis.v15i2.2864

Horne, V. dan W. (2019). Prinsip-prinsip Manajemen Keuangan. Edisi Indonesia. Salemba Empat.

Husna, A., & Satria, I. (2019). International Journal of Economics and Financial Issues Effects of Return on Asset, Debt to Asset Ratio, Current Ratio, Firm Size, and Dividend Payout Ratio on Firm Value. International Journal of Economics and Financial Issues, 9(5), 50–54. https://doi.org/10.32479/ijefi.8595

Ikhsan, Hamid Nur and WIJAYATI, FITRI LAELA. (2019). Pengaruh Profitabilitas, Likuiditas, Leverage, Ukuran Perusahaan dan Kebijakan Dividen Terhdap NIlai Perusahaan Pada Perusahaan BUMN Yang Terdaftar di BUrsa Efek Indonesia (BEI) Pada Tahun 2014-2017. Skripsi thesis, FEBI/AKS.

Jensen, M. C., & Meckling, W. H. (2019). Theory of the firm: Managerial behavior, agency costs, and ownership structure. Journal of Financial Economics. https://doi.org/10.1007/978-94-009-9257-3_8

Karima, M., & Ghazali, M. (2023). The Effect of Leverage, Market Value, and Profitability on Share Prices. Research of Finance and Banking, 1(1), 1–12. https://doi.org/10.58777/rfb.v1i1.31

Kahfi, M. F., Pratomo, D., & Aminah, W. (2020). Pengaruh Current Ratio, Debt To Equity Ratio, Total Assets Turnover Dan Return On Equity Terhadap Nilai Perusahaan (Studi Kasus Pada Perusahaan Manufaktur Sektor Food and Beverage Yang Terdaftar Di Bursa Efek Indonesia Pada Tahun 2011 – 2016). Research in International Business and Finance, 51(1), 101099. https://doi.org/10.1016/j.ribaf.2019.101099

Munawaroh, M., & Simon, Z. Z. (2023). The Influence of Store Atmosphere, Service Quality, Product Quality, and Price on Customer Satisfaction. Research of Business and Management, 1(1), 35–44. https://doi.org/10.58777/rbm.v1i1.21

Riyanti, & Darto. (2019). The Effect of Liquidity, Profitability, and Size Ratios on Capital Structure and Implications for the Value of Manufacturing Industry Firms Listed on the IDX. KnE Social Sciences, 2019, 849–871. https://doi.org/10.18502/kss.v3i26.5419

Santosa, P. W. (2019). Financial performance, exchange rate, and stock return: Evidence from the manufacturing sector. Jurnal Manajemen Teknologi, 18(3), 205–217. https://doi.org/10.12695/jmt.2019.18.3.5

Santosa, P. W. (2020). The moderating role of firm size on financial charactersitics and Islamic firm value at Indonesian equity market. Business: Theory and Practice, 21(1), 391–401. https://doi.org/10.3846/btp.2020.12197

Santosa, P. W., Aprilia, O., & Tambunan, M. E. (2020). The Intervening Effect of the Dividend Policy on Financial Performance and Firm Value in Large Indonesian Firms. International Journal of Financial Research, 11(4), 408–420. https://doi.org/10.5430/ijfr.v11n4p408

Santosa, P. W., & Puspitasari, N. (2019). Corporate Fundamentals, Bi Rate, and Systematic Risk: Evidence From Indonesia Stock Exchange. Jurnal Manajemen, 23(1), 40–53. https://doi.org/10.24912/jm.v23i1.443

Santosa, P. W., Rahayu, S. I., Simon, Z. Z., & Tambunan, M. E. (2021). The moderating role of audit quality and firm size in the effect of corporate governance on related party transactions: Evidence from Indonesia. Investment Management and Financial Innovations, 18(4), 166–176. https://doi.org/10.21511/imfi.18(4).2021.15

Saputri, N. A., & Santoso, P. R. (2023). Influence of Profitability, RETA, Liquidity, Leverage, Company Size, and Corporate Governance on Financial Distress. Research of Accounting and Governance, 1(1), 1–12. https://doi.org/10.58777/rag.v1i1.6

Sihombing, P., Hutajalu, C. B. B., & Suparyati, A. (2023). Financial Performance and Capital Structure on Firm Value with Commodity Prices as a Moderating Variable. Research of Business and Management, 1(2), 57–66. https://doi.org/10.58777/rbm.v1i2.80

Sihombing, P., Melitana, C. L., & Oktavia, D. (2023). Analysis of factors influencing stock returns with firm size as a moderating variable in the garment and textile industry listed on the Indonesian Stock Exchange (BEI) 2016-2020. Research of Finance and Banking, 1(2), 93–102. https://doi.org/10.58777/rfb.v1i2.140

Watiningsih, F. (2018). Pengaruh Profitabilitas, Ukuran Perusahaan, Tangibility, Dan Pertumbuhan Terhadap Struktur Modal Pada Perbankan Yang Terdaftar Di Bei Periode 2008-2016. Jurnal SEKURITAS (Saham, Ekonomi, Keuangan Dan Investasi), 1(4), 92–105. https://doi.org/10.32493/skt.v1i4.1382

Watung, A. K. S. (2020). Pengaruh Rasio Likuiditas, Aktivitas, Profitabilitas, Dan Struktur Aktiva Terhadap Struktur Modal Industri Barang Konsumsi Di Bursa Efek Indonesia. Jurnal EMBA: Jurnal Riset Ekonomi, Manajemen, Bisnis Dan Akuntansi, 4(2). https://doi.org/https://doi.org/10.35794/emba.v4i2.13152

Yudiandari, C. I. D. (2018). Pengaruh Profitabilitas, Operating Leverage, Ukuran Perusahaan dan Pertumbuhan Penjualan pada Struktur Modal. E-Jurnal Akuntansi Universitas Udayana, 22(1), 408–437. https://doi.org/10.24843/EJA.2018.v22.i01.p16