The Effect of Investment Decisions, Funding Decisions, Operational Decisions on Value of the Firm through Financial Distress as Intervening and Good Corporate Governance (GCG) as Moderating
Article Sidebar
Main Article Content
Abstract
This research focuses on companies engaged in manufacturing because manufacturing companies are one of the important things for economic growth in Indonesia. Indonesian manufacturing companies are currently not diversified and only export relatively few types of products. This study aims to prove and analyze the relationship between investment decisions, funding decisions, operational decisions, financial distress, GCG on firm value. The sample in this study namelya manufacturing company engaged in the industrial sector listed on the Indonesia Stock Exchange (IDX) with a financial reporting period of 3 years, period 2019 to 2021. Tests were carried out using SmartPLS with an analysis of the outer model test and the inner model test. The research results show that operational decisions have a significant effect on financial distress, operational decisions have a significant effect on firm value andGood Corporate Governance (GCG)on firm value has a significant effect. The relationship of other variables shows no significant results on financial distress and firm value.
Downloads
Article Details
This work is licensed under a Creative Commons Attribution 4.0 International License.
References
Adhitya, D., Hermanto, SB, & Ardini, L. (2022). the Influence of Profitability and Leverage on Company Value With Good Corporate Governance As Moderating Variables. Administrare Journal: Journal of Scientific Thought and Office Administration Education, 9(1), 77–94.
Agung, G., Hasnawati, S., & Huzaimah, RAF (2021). The Effect of Investment Decision, Financing Decision, Dividend Policy on Firm Value. Journal of Business and Management, 17(1), 1–12. https://doi.org/10.23960/jbm.v17i1.189
Amaliyah, F., & Herwiyanti, E. (2020). The Influence of Investment Decisions, Company Size, Funding Decisions and Dividend Policy on Mining Sector Company Value. Journal of Economics and Business Research, 5(1), 39–51. https://doi.org/10.33633/jpeb.v5i1.2783
Astakoni, IMP, & Wardita, IW (2020). Investment Decision, Leverage, Profitability, and Company Size as Determinants of Manufacturing Company Value. ECONOMIC DISCOURSE (Journal of Economics, Business and Accounting), 19(1), 10–23. https://doi.org/10.22225/we.19.1.1576.10-23
Bon, SF, & Hartoko, S. (2022). The Effect of Dividend Policy, Investment Decision, Leverage, Profitability, and Firm Size on Firm Value. European Journal of Business and Management Research, 7(3), 7–13. https://doi.org/10.24018/ejbmr.2022.7.3.1405
Fajaria, AZ, Purnamasari, L., & Isnalita, I. (2017). The Effect of Investment Decisions, Funding Decisions and Dividend Policy on Company Value Study on Manufacturing Companies Listed in Indonesia Stock Exchange Period 2009-2013. Advances in Economics, Business and Management Research (AEBMR), 35(Miceb 2017), 25–32.
Fauzhan, AA, & Gustyana, TT (2019). THE EFFECT OF INVESTMENT DECISIONS, FUNDING DECISIONS, DIVIDEND POLICY, AND INTEREST RATE ON THE VALUE OF THE COMPANY (Study Case on Sub Sector Textile and Garment registered in Indonesia stock Exchange period 2014 – 2018). 6(3), 5611–5618.
Gautama, BP, Octavia, NK, & Nurhayati, NS (2019). The Influence of Investment Decisions and Funding Decisions on Company Value in the Property, Real Estate and Building Construction Sectors Listed on the Indonesia Stock Exchange for the 2013-2017 Period. Organum: Scientific Journal of Management and Accounting, 2(2), 117–129. https://doi.org/10.35138/organum.v2i2.49
Hariyani, DS, Ratnawati, T., & Rahmiyati, N. (2021). The Relationship Between Company Value and Good Financial Governance : Empirical Evidence from Indonesia. Journal of Asian Finance, Economics and Business, 8(7), 447–456. https://doi.org/10.13106/jafeb.2021.vol8.no7.0447
Ibnu, R., & Mujiyati, M. (2022). the Effect of Investment Decisions, Funding Decisions, and Profitability on Manufacturing Company Value in Indonesia Stock Exchange 2015-2018 Period. American Journal of Sciences and Engineering Research, 5(4), 1–15.
Ispriyadi, H., & Putri, GAU (2021). The Effect Of Leverage, Profitability, And Dividend Policy On Firm Value. JAAF (Journal of Applied Accounting and Finance), 5(2), 68–80.
Jesilia, J., & Purwaningsih, S. (2020). (Study of Consumer Goods Sector Companies Listed on the Indonesia Stock Exchange 2014-2017). 13(April), 157–164.
Junivar, MS, Ariefianto, MD, & Trinugroho, I. (2022). Financial Distress, value of firm, trilemma index and investment decision studies on large global mining companies. Fair Value: Scientific Journal of Accounting and Finance, 4(10), 4697–4703. https://doi.org/10.32670/fairvalue.v4i10.1742
Lisa Tamarani. (2015). The Effect of Good Corporate Governance Index and Financial Distress on Firm Value with Company Performance as an Intervening Variable (Study of Manufacturing Companies Listed on the Indonesia Stock Exchange (IDX) for the 2009-2012 period). Jom Fekon, 2(1), 1–15.
Matiin, N., Ratnawati, T., & Riyadi, S. (2018). The Influence of Investment Decisions, Funding Decisions, Risk of Strategy, To Efficeincy, Finance Performance, Value of Firm, Good Corporate Governance As Moderating Variable In The Mining Company Coal Sub Sector Go Public In Indonesia Stock Exchange. Archives of Business Research, 6(6).
Meutia, R., Erlina, ., Bukit, R., & Fachrudin, KA (2021). The Effect of Investment, Financing, Dividend Decisions, Firm Growth, and Agency Costs on Firm Value. Ebic 2019, 204–208. https://doi.org/10.5220/0009201502040208
Murniati, S., Mus, HAR, Semmaila, HB, & Nur, HAN (2019). Effect of Investment Decisions, Financing Decisions and Dividend Policy on Profitability and Value of The Firm. International Journal of Accounting & Finance in Asia Pacific, 2(1), 1–10.
Nurlela, N., Sulastri, S., AJ, UH, & Hanafi, A. (2019). The Influence Of Investment Decisions And Financing Decisions On Firm Value With Profitability As Intervening Variables (Empirical Study On Companies Listed In Indonesian Sharia Stock Index). International Journal of Multicultural and Multireligious Understanding, 6(2), 447. https://doi.org/10.18415/ijmmu.v6i2.758
Pratiwi, DO, Ratnawati, T., & Maqsudi, A. (2023). The Effect of Asset Growth , Sales Growth and Capital Structure on Financial Distress and Value of the Firm in the Food and Beverage Sub-Sector with Good Corporate Governance as Moderation. 06(01), 53–69.
Pristiana, U. (2018). Investment Decision , Capital Decision , Industry Performance , Econimic Macros As Antecedent Variables of Financial Risk Management and Financial Distress Against Value of the Firm With Gcg As a Variable Moderating for Manufacturing Companies Registered . Archives of Business Research, 5(9). https://doi.org/10.14738/abr.69.5272
Pristiana, U., & Istiono, I. (2020). Analysis of Investment Decisions, Funding Decisions, Financial Risk Management Impacts on Financial Distress With Moderation of Good Corporate Governance in Manufacturing Industry Sectors Listed on the Indonesia Stock Exchange. Ekspektra : Journal of Business and Management, 4(2), 121–135. https://doi.org/10.25139/ekt.v4i2.3135
Ross, A. Stephen, Westerfield, Randoph W and Jaffe, Jeffrey. 2005. Corporate Finance. Seventh Edition, McGraw-Hill, Boston
Sari, AR, Hermuningsih, S., & Maulida, A. (2022). The Influence of Investment Decisions, Funding Decisions, Profitability and Interest Rates (BI Rate) on Company Value of Manufacturing Companies on the IDX in 2016-2020. Economic Forum, 24(1), 1–12.
Sariroh, H. (2021). The Influence of Liquidity, Leverage, Profitability, and Company Size on Financial Distress in the Trade, Service, and Investment Sector. Journal of Management Science, 9(3), 1227–1240. https://doi.org/10.26740/jim.v9n3.p1227-1240
Sherine, C., Wiyanto, H., & Budiono, H. (2022). The Effect of Investment Decision, Funding Decision, and Profitability on the Firm Value of Consumer Goods Industry Registered in Indonesia Stock Exchange During 2017-2020. Proceedings of the Tenth International Conference on Entrepreneurship and Business Management 2021 (ICEBM 2021), 653(Icebm 2021), 552–559. https://doi.org/10.2991/aebmr.k.220501.084
Sihwajoeni, Subiyantoro, E., & Bili, MR (2020). Analysis Effect of Investment Decision, Financing and Dividend Policy on Company Value with Variable Business Risk as Mediation. International Journal of Research and Scientific Innovation (IJRSI) |, 7(7), 2321–2705. www.rsisinternational.org
Sri Brahmayanti, IA, Ratnawati, T., & Nugroho, M. (2021). The Effect of Macro Economic, Financing Decision, Investment Decision on Value of The Firm with Financial Risk, Earning Management, Free Cash Flow as Intervening Variables and GCG as Moderating Variables in Indonesian Manufacturing Companies. International Journal of Scientific and Research Publications (IJSRP), 11(11), 305–316. https://doi.org/10.29322/ijsrp.11.11.2021.p11938
Sulistiono, S., & Yusna, Y. (2020). Analysis of the Effect of Funding Decision and Dividend Policy on the Firm Value and Investment Decision as Mediation (Study on Manufacturing Companies in Indonesia Stock Exchange). 136(Ambec 2019), 173–177. https://doi.org/10.2991/aebmr.k.200415.035
Wahyuni, F., & Amanati, HT (2019). Investment Decisions, Funding Decisions, Dividends, and Firm Value (Study of Companies Listed on the Indonesia Stock Exchange). 102(Icaf), 66–72. https://doi.org/10.2991/icaf-19.2019.11