Published date: Jul 18 2023

Journal Title: KnE Social Sciences

Issue title: Transdisciplinary Symposium on Business, Economics, and Communication (TSBEC 2022)

Pages: 231–241

DOI: 10.18502/kss.v8i12.13673

Zulkifli .Department of Management & Jaya Launch Pad, Universitas Pembangunan Jaya, Banten, Indonesia

Fendi SaputraDepartment of Management & Jaya Launch Pad, Universitas Pembangunan Jaya, Banten, Indonesia

Mohd Zulkifli MuhammadUniversiti Malaysia Kelantan, Kelantan, Malaysia

Sigit MaretaAccounting Program, Universitas Dian Nusantara, Jakarta, Indonesia

Caturida Meiwanto DoktoralinaAccounting Program, Universitas Dian Nusantara, Jakarta, Indonesia

Cement companies in Indonesia support the government’s role in the development of the property sector. However, the Covid-19 pandemic has caused problems in making a profit. Therefore, the main problem of this study is to find out and analyze how profitability affects leverage and market value with the variables price earnings ratio (PER) and price to book value (PBV) as proxies. Second, knowing and analyzing leverage as an intervening variable that relates the effect of profitability to market value. This study uses the documentation analysis method of social research for exploring the theoretical model and empirical results of how profitability affects market value through leverage. The results from various empirical results showed that there is still little research on the ability of leverage as a variable to analyze cement companies listed on the Indonesia Stock Exchange. The results of the study can be expected to contribute to further research and facilitate the government to approach the development of cement companies to encourage the economy. Meanwhile, investors can be informed about the company’s financial performance. This study will provide advanced research guidance and convenience to the companies in providing solutions on how to increase market value by increasing profitability through leverage factors.

Keywords: leverage, market value, profitability, Price Earnings Ratio (PER), Price to Book Value (PBV)

[1] Najmiyah ES, Sinarwati NK. Pengaruh price to book value (PBV), Price earning ratio (PER) dan debt to equity ratio (DER) terhadap Return Saham pada industri Real Estate dan Property yang terdaftar di Bursa Efek Indonesia Periode 2009–2013. E-Journal S1 Ak Universitas Pendidikan Ganesha. 2014;2(1).

[2] Fama EF, French KR. Taxes, financing decisions, and firm value. The Journal of Finance. 1998;53(3):819-843.

[3] Sihombing G. Kaya dan pinter jadi trader & investor saham. Yogyakarta: Indonesia Cerdas; 2008.

[4] Prihadi T. Analisis Laporan Keuangan. Jakarta: Gramedia Pustaka Utama; 2019.

[5] Kabajeh MAM, Al Nu’aimat SMA, Dahmash FN. The relationship between the ROA, ROE and ROI ratios with Jordanian insurance public companies market share prices. International Journal of Humanities and Social Science. 2012;2(11):115-120.

[6] Chen LJ, Chen SY. The influence of profitability on firm value with capital structure as the mediator and firm size and industry as moderators. Investment Management and Financial Innovations. 2011;8(3):121-129.

[7] Qusibah VL, Yusra I. Profitabilitas, dan Ukuran Perusahaan Sebagai Faktor Penentu Leverage Perusahaan Di Indonesia. Jurnal Pundi. 2019;3(1):13–26.

[8] Hermuningsih S. Pengaruh profitabilitas, size terhadap nilai perusahaan dengan sruktur modal sebagai variabel intervening. Jurnal siasat bisnis. 2012;16(2):232–242.

[9] Mazur K. The determinants of capital structure choice: Evidence from Polish companies. International Advances in Economic Research. 2007;13:495-514.

[10] Bhaduri SN. Determinants of capital structure choice: A study of the Indian corporate sector. Applied Financial Economics. 2002;12(9):655-665.

[11] Ebel Ezeoha A. Firm size and corporate financial leverage choice in a developing economy: Evidence from Nigeria. The Journal of Risk Finance. 2008;9(4):351-364.

[12] Purnamasari NKP, Baskara IGK. Pengaruh Leverage Profitabilitas dan Economic Value Added Terhadap Nilai Perusahaan Pertambangan di Bursa Efek Indonesia. J-MKLI ( Jurnal Manajemen dan Kearifan Lokal Indonesia). 2019;3(1):12-24.

[13] Moniaga F. Struktur modal, profitabilitas dan struktur biaya terhadap nilai perusahaan industri keramik, porcelen dan kaca periode 2007-2011. Jurnal EMBA: Jurnal Riset Ekonomi, Manajemen, Bisnis dan Akuntansi. 2013;1(4).

[14] Jusriani IF, Rahardjo SN. Analisis Pengaruh Profitabilitas, Kebijakan Deviden, Kebijakan Utang, dan Kepemilikan Manajerial terhadap Nilai Perusahaan (Studi Empiris Pada Perusahaan Manufaktur Yang Terdaftar di Bursa Efek Indonesia Periode 2009–2011). Diponegoro Journal of Accounting. 2013:168-177.

[15] Anggraini D, Zulkifli. Internal determinants of company value with leverage as a moderating variable. International Journal of Enterprise Network Management. 2021;12(4):312-324.

[16] Aji MN, Pangestuti IRD. Analisis Faktor-Faktor yang Mempengaruhi Price Earning Ratio (Studi Empiris pada Perusahaan Manufaktur yang Terdaftar di Bursa Efek Indonesia 2007-2010). Diponegoro Journal of Management. 2012;1(4):382-391.

[17] Asteria B. Analisis Faktor-Faktor Yang Mempengaruhi Price Earning Ratio Pada Perusahaan Lq 45. Jurnal Riset Manajemen Sekolah Tinggi Ilmu Ekonomi Widya Wiwaha Program Magister Manajemen. 2016;3(1):49-60.

[18] Hamizar H. Analisis Faktor-Faktor Fundamental Dan Faktor Teknikal Serta Pengaruhnya Terhadap Price To Book Value (Studi Empiris pada Perusahaan Pertambangan yang tercatat di Bursa Efek Indonesia periode 2010-2014). Jurnal Lentera Akuntansi. 2017;2(1):6-21.

[19] Hirdinis M. Capital structure and firm size on firm value moderated by profitability. International Journal of Economics and Business Administration. 2019;7(1):174–191. https://doi.org/10.35808/ijeba/204

[20] Gitman LJ, Juchau R, Flanagan J. Principles of managerial finance. 5th ed. Australia: Pearson Higher Education; 2015.

[21] Ahmad N, Ali M. Impact of capital structure on firm’s financial performance: Cement industry of Pakistan. European Journal of Business and Management. 2016;8(4):115– 119.

[22] Khan MN, Khokhar I. The effect of selected financial ratios on profitability: an empirical analysis of listed firms of cement sector in Saudi Arabia. Quarterly Journal of Econometrics Research. 2015;1(1):1-12.

[23] Sartono A. Manajemen Keuangan Teori dan Aplikasi. Edisi Kenaem. Yogyakarta, Indonesia: BPFE; 2001.

[24] Eugene BF, Houston JF. Dasar-dasar manajemen keuangan. Jakarta: Salemba Empat; 2006.

[25] Van Horne JC, Wachowicz Jr JM. Prinsip-Prinsip Manajemen Keuangan. Edisi 13, Buku 1. Jakarta: Salemba Empat; 2012.

[26] Myers SC. Determinants of corporate borrowing. Journal of Financial Economics 1977;5(2):147-175.

[27] Myers SC, Majluf NS. Corporate financing and investment decisions when firms have information that investors do not have. Journal of Financial Economics. 1984;13(2):187-221.

[28] Darmadji T, Fakhruddin HM. Pasar modal di Indonesia. Jakarta: Salemba Empat; 2011.

[29] Pangestu AD, Wijaya RE. Pengaruh intellectual capital terhadap market value dan kinerja keuangan. Journal of Accounting and Investment. 2014;15(2):90-100.

[30] Bowen GA. Document analysis as a qualitative research method. Qualitative Research Journal. 2009;9(2):27-40. https://doi.org/10.3316/QRJ0902027

[31] Nurhayati M. Profitabilitas, likuiditas dan ukuran perusahaan pengaruhnya terhadap kebijakan dividen dan nilai perusahaan sektor non jasa. Jurnal Keuangan & Bisnis Program Studi Magister Manajemen Sekolah Tinggi Ilmu Ekonomi Harapan. 2013;5(2):144-153.