Mediation effects financial performance toward influences of corporate growth and assets utilization

Abstract

Purpose The purpose of this paper is to measure the effects of corporate financial performance toward the influences of corporate growth and company asset utilization on the corporate market value. Design/methodology/approach This research is an explanatory research that describes the influences of one or more variables on other variables based on secondary data. This research took place in Indonesia and was carried out from 2011 to 2016. Findings The findings of this study are corporate growth has a significant influence on the corporate market value, implying that companies should consider the short-term and long-term profitabilities before making any investment decision; asset utilization has been confirmed to have a positive and significant influence on financial performance. Insights into asset utilization effectiveness and efficiency are important for company managers to consider in making strategic decisions upon operational activities of the company. Also, financial performance has a positive and significant influence on the corporate market value. Originality/value Research originality offered in this research is in the form of empirical evidence upon the influence of company asset utilization on the financial performance and corporate market value of a company. The finding of this research is expected to provide a better understanding on the role of company asset utilization in determining corporate financial performance which is known to be certain.

The nonlinear relationship between financial flexibility and enterprise risk-taking during the COVID-19 pandemic in Taiwan?s semiconductor industry

“…For control variables, this study measured five factors: Revg, Rdd, Bnig, Oeg and Ard (see Table 1), is found by previous studies that may determine firm value (Boisjoly et al, 2020;Rahayu, 2019;Sardo & Serrasqueiro, 2018;Zeidan & Shapir, 2017). Lastly, we control for quarterly fixed as well as industry differences in our sample.…”

Convex-concave effect of financial flexibility on hospitality performance: quantile regression approach

“…Control variables. Previous studies found the following control variables affected EP: growth rate of revenue (GRR) stands for "the percentage increases in revenue quarter over the quarter"; current ratio (CR) stands for "current assets divided by current liability"; net profit growth rate before taxes (NPGBT) refers as "net profit before taxes for the current period minus net profit before tax of the previous period divided by net profit before tax of the previous period"; the growth rate of owner's equity (GROE) is "owners' equity of current period minus owners' equity of previous period divided by owners' equity of previous period" (Rahayu, 2019;Sardo and Serrasqueiro, 2018;Zeidan and Shapir, 2017); average collection days (ARD) (Boisjoly et al, 2020;Teng et al, 2021;Zeidan and Shapir, 2017) and firm size (SIZE) is the book value of total assets and is measured by the natural logarithm of total assets (Lee and Xiao, 2021;Song et al, 2021).…”

Corporate governance mechanisms and corporate investments: evidence from India

“…Investment decisions are critical to a corporation's goal of maximisation of shareholders' wealth (Singh et al, 2012;Mangesti Rahayu, 2019). In particular, research and development (R&D) investments enhance a firm's competitiveness and technological capabilities (Dong and Gou, 2010;Shaikh et al, 2018).…”

“…Fourth, besides the static relationship, it also considers the dynamic relationship between corporate governance and corporate investments. Finally, this study attempts to address how corporate governance may influence a firm's value by evaluating its implications on the investment decisions that have been shown to be an important determinant of its valuation (Singh et al, 2012;Mangesti Rahayu, 2019).…”