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Original Research

ASSETS VALUE ADDED AND FINANCIAL SUSTAINABILITY ON STOCK LIQUIDITY: INDONESIA EVIDENCE

RORISTUA PANDIANGAN 1, YUSWAR Z. BASRI 2, and SEKAR MAYANGSARI 3.

Vol 18, No 05 ( 2023 )   |  DOI: 10.17605/OSF.IO/4NJFE   |   Author Affiliation: PhD Student in Economics with a Focus in Accounting at Trisakti University 1; Professor of Economic Doctoral Program, Accounting Concentration in Trisakti University 2; Associate Professor of Economic Doctoral Program, Accounting Concentration in Trisakti University 3.   |   Licensing: CC 4.0   |   Pg no: 604-629   |   Published on: 16-05-2023

Abstract

The goal of this study is to investigate the impact of asset value added, financial sustainability on stock liquidity and investigate the moderating effect of information asymmetry on the impact of asset value added, financial sustainability on stock liquidity. The development of measurements on Financial Sustainability is a novelty in this study. This study takes into account companies listed on the Indonesia Stock Exchange in the sector of basic materials, consumer non-cyclicals, consumer cyclicals, energy, healthcare, industrial, infrastructure, technology (hereinafter referred to as manufacturing entities) as the unit of analysis, the year of observation between 2018-2020 with the type of data using panel data and combining moderate regression and multiple regression analysis to analyze the data. Research findings: Stock liquidity is influenced and/or explained by assets value added and financial sustainability with information asymmetry as a moderating variable in perspective and evidence in Indonesia. Stock Liquidity is positively impacted by Assets Value Added, Stock Liquidity is negatively impacted by financial sustainability, Information asymmetry causes the weak effect of Assets Value Added on Stock Liquidity, Information Asymmetry causes the weak effect of Financial Sustainability on Stock Liquidity. The implication of research a new measurement is obtained to measure financial sustainability, obtained additional financial sustainability strategies that will be implemented in the short term and long term.


Keywords

Stock Liquidity, Assets Value Added, Financial Sustainability, Information Asymmetry