THE EFFECT OF INTERNAL, EXTERNAL FACTORS ON CORPORATE PERFORMANCE AND ITS IMPACT ON CORPORATE VALUES IN INDONESIA MANUFACTURING COMPANIES IN THE AUTOMOTIVE SUB SECTOR AND ITS COMPONENTS IN 2008-2017
DOI:
https://doi.org/10.29121/ijetmr.v6.i6.2019.398Keywords:
Current Ratio, Debt to Equity Ratio, Inflation, IDR Exchange Rate, Return on Assets, Price to Book ValueAbstract
This study aims to find out: (1) Effect of Current Ratio (CR), Debt to Equity Ratio (DER), inflation and the IDR exchange rate on Return on Assets (ROA); (2) Effect of Current Ratio (CR), Debt to Equity Ratio (DER), inflation and the IDR exchange rate against Price to Book value (PBV); (3) Effect of Return on Assets (ROA) on Price to Book value (PBV); (4) Role of Return on Assets ROA as an intervening variable between Current Ratio (CR), Debt to Equity Ratio (DER), inflation and the IDR exchange rate with Price to Book value (PBV). The research sample is the automotive sub-sector manufacturing company and its components in the period 2008-2017 as many as 9 companies. The results of the study with panel data show that simultaneously CR, DER, inflation and the rupiah exchange rate affect ROA, partially CR and inflation have no significant effect on ROA, while DER and the IDR exchange rate have a significant effect on ROA. Simultaneously CR, DER, inflation and the IDR exchange rate affect PBV, partially CR, DER and inflation have no significant effect on PBV, while the IDR exchange rate has a significant effect on PBV. 12. The role of ROA as an intervening variable is very important in increasing the influence of CR, DER, inflation and the IDR exchange rate against Price to Book Value (PBV).
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