Jurnal Keuangan dan Perbankan Universitas Merdeka Malang
The Mediating Effect of Debt Equity Ratio on The Effect of Current Ratio, Return on Equity and Total Asset Turnover on Price to Book Value
Dublin Core
Title
Jurnal Keuangan dan Perbankan Universitas Merdeka Malang
The Mediating Effect of Debt Equity Ratio on The Effect of Current Ratio, Return on Equity and Total Asset Turnover on Price to Book Value
The Mediating Effect of Debt Equity Ratio on The Effect of Current Ratio, Return on Equity and Total Asset Turnover on Price to Book Value
Subject
Current Ratio; Price to Book Value; Return on Equity; Technology Sector; Total Asset Turnover
Description
The research conducted here has two aims: firstly, it endeavors to examine the impacts of liquidity, Profitability, and activity ratio on capital structure as well as the firm value; and, secondly, it attempts to examine the role of capital structure as a mediator. We conduct the test with multiple regression and path analysis over 2020 – 2021 quarterly, with Eviews 8 software. Some companies in the technology sector are taken as samples. Besides, we also analyze financial statement data from Indonesia Stock Exchange. The result indicates Current Ratio, Return on Equity, Debt Equity Ratio significantly affect the Price Book
Value, while Total Asset Turnover does not. The Current Ratio does not significantly affect the Debt Equity Ratio, while Total Asset Turnover and Return on Equity have significant negative effects. Path Analysis has confirmed that the Debt Equity Ratio cannot mediate the effect of the Current Ratio and Return on Equity on Price Book Value. However, it fully mediates the effect of Total Asset Turnover on Price Book Value. This finding of the present study supports the pecking order and static theory. The novelty of this research is that there is still little research on debt equity ratio as a mediator. There is no research especially on the technology sector, using those factors to determine the firm value. This research also uses the latest data of financial statements.
Value, while Total Asset Turnover does not. The Current Ratio does not significantly affect the Debt Equity Ratio, while Total Asset Turnover and Return on Equity have significant negative effects. Path Analysis has confirmed that the Debt Equity Ratio cannot mediate the effect of the Current Ratio and Return on Equity on Price Book Value. However, it fully mediates the effect of Total Asset Turnover on Price Book Value. This finding of the present study supports the pecking order and static theory. The novelty of this research is that there is still little research on debt equity ratio as a mediator. There is no research especially on the technology sector, using those factors to determine the firm value. This research also uses the latest data of financial statements.
Creator
Fredella Colline
Source
DOI: 10.26905/jkdp.v26i1.6882
Publisher
Universitas Merdeka Malang
Date
January 2022
Contributor
Sri Wahyuni
Rights
ISSN: 2443-2687 (Online) ISSN: 1410-8089 (Print)
Format
PDF
Language
English
Type
Text
Coverage
Jurnal Keuangan dan Perbankan Universitas Merdeka Malang
Files
Collection
Citation
Fredella Colline, “Jurnal Keuangan dan Perbankan Universitas Merdeka Malang
The Mediating Effect of Debt Equity Ratio on The Effect of Current Ratio, Return on Equity and Total Asset Turnover on Price to Book Value,” Repository Horizon University Indonesia, accessed November 21, 2024, https://repository.horizon.ac.id/items/show/4825.
The Mediating Effect of Debt Equity Ratio on The Effect of Current Ratio, Return on Equity and Total Asset Turnover on Price to Book Value,” Repository Horizon University Indonesia, accessed November 21, 2024, https://repository.horizon.ac.id/items/show/4825.