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Original Research

FIRM VALUE DETERMINANT MODEL NON-PRIMARY CONSUMER GOODS SECTOR TEN LEADING STOCKS

ALJUFRI 1, MEDY DESMA FATWARA 2, DHEA ZATIRA 3, LUQMAN HAKIM 4, and YULI ZAIN 5.

Vol 19, No 12 ( 2024 )   |  DOI: 10.5281/zenodo.14382786   |   Author Affiliation: Faculty of Economics and Business, Postgraduate Doctor of Management Science Universitas Persada Indonesia Y.A.I- Jakarta 1,2,3,4,5.   |   Licensing: CC 4.0   |   Pg no: 91-101   |   Published on: 11-12-2024

Abstract

This study is intended to analyze and answer the research gap among researchers and the phenomenon that occurs where leverage as one of the risk elements is not a concern for institutional ownership and the availability of company liquidity. Another thing is that leverage as one of the risk elements is not a consideration for capital market investors. This type of research is quantitative descriptive with a panel data multiple regression analysis method that uses research objects of companies listed on the Indonesia Stock Exchange in the Non-Primary Consumer Goods Sector. By using the purposive sampling method, ten companies were obtained as leading stocks. The formulation in this study is to maximize Firm Value through Leverage as an intervening variable. There are two research models that are integrated into one and each goes through the stages of model selection testing, namely the Chow Test, the Hausman Test, and the Lagrange Multiplier Test. The results of the first model, Ownership Structure can explain the impact on Leverage with a negative correlation. The same results also occur in Liquidity but with a positive correlation. Thus, these results have confirmed the prevailing theory. The results of the second model, only Ownership Structure can explain its influence on Firm Value with a positive correlation as the applicable theory, while other variables cannot explain Firm Value so that Leverage does not function as an intervening variable. These results are expected to help as a guideline for public companies to obtain maximum Firm Value.


Keywords

Ownership Structure, Liquidity, Leverage, Firm Value.