The determinants factors of firm value

Abstract

This study aims to analyse the determinants factors of firm value. company performance is important to the company’s operational performance which is reflected in firm value. The data were collected from 41 manufacturing sector companies in Indonesia. The manufacturing sector has diverse sectors, a very broad scope, and a larger industrial scale The structural equation model-partial least square (SEM-PLS) analysis was conducted to analyse the relationship between variables and test a series of hypotheses. This study reveals the significant impact solvability and profitability have on asset turnover toward the firm value. This study proves that every stakeholder must maintain its existence by maximizing asset turnover to firm value. Conceptually, this study offers asset turnover as a mediating variable of firm value.