Company value or Firm value is a certain condition that has been achieved by the company as an illustration of public trust and shareholders towards the company after going through an activity process for several years, since the company was first established until now. This study aims to determine the effect that occurs between Leverage, Asymmetric Information, and Corporate Governance on the Firm Value through Cash Holdings as a mediating variable. The data used in this study are published financial report from 33 manufacturing companies in the Consumer Goods Industry Sector listed on the Indonesia Stock Exchange from 2011 - 2017. The conclusion of this study is that cash holdings are only able to mediate the influence of corporate governance with a proxy proportion of the board independence on firm value. Directly cash holding and corporate governance with a proxy proportion of the number of independent commissioners
also influence the firm value while leverage, asymmetric information and corporate governance with a proxy percentage of the number of share ownership by managerial do not directly affect the firm value of the company. So as to increase the value of the company, companies should determine the proportion of the right amount of board independence so it can create good corporate governance that can increase value of the company.
Firm Value, Leverage, Asymmetric Information, Corporate Governance, Cash Holdings
Ferreira, M.A. and Vilela, A.S., 2004. Why do firms hold cash? Evidence from EMU countries. European Financial Management.
García-Teruel, P.J., Martínez-Solano, P. and Sánchez-Ballesta, J.P., 2009. Accruals quality and corporate cash holdings. Accounting and Finance.
Ginglinger, E. and Saddour, K., 2012. Cash Holdings, Corporate Governance and Financial Constraints. Ssrn.
Hamonangan Siallagan, M.M., 2006. Mekanisme Corporate Governance, Kualitas Laba Dan Nilai Perusahaan. Simposium Nasional Akuntansi 9 Padang.
Hartono, J., 2016. Teori Portofolio dan Analisis Investasi. BPFE- Yogyakarta.
Hendrawaty, E., 2015. Peran Corporate Governance Dalam Mengendalikan Masalah Keagenan Yang Ditimbulkan Oleh Excess Cash Holdings. Universitas Gajah Mada.
Jensen, M. and Meckling, W., 2012. Theory of the firm: Managerial behavior, agency costs, and ownership structure. In: The Economic Nature of the Firm: A Reader, Third Edition.
Jinkar, T.R., 2013. Analisa faktor- faktor penentu kebijakan cash holdings perusahaan manufaktur di Indonesia.
Marciano, D. and Husnan, S., 2012. The Impact of Information Asymmetry, Moral Hazard and the Structure of Funding on Corporate U.S. Dollars Loan Pricing: The Empirical Study in Indonesia the Period 1990-1997. SSRN.
Myers, S.C., 1983. The Capital Structure Puzzle.
Solikah, M., Astuti, P. and Paramitha, A., 2017. Pengaruh Profitabilitas, Likuiditas dan Leverage Dalam Memprediksi Financial Distress (Studi Empiris Pada Perusahaan Manufaktur yang Terdaftar di BEI Periode 2009-2013). JURNAL AKUNTANSI & EKONOMI FE. UN PGRI Kediri Vol. 2 No. 1, Maret 2017.
Sudana, I.M., 2011. Manajemen Keuangan Perusahaan Teori & Praktik. Erlangga.
Sudiyatni, B. and Puspitasari, E., 2010. Tobin’s Q Dan Altman Z-Score Sebagai Indikator Pengukuran Kinerja Perusahaan Tobin’s Q and Altman Z-Score as Indicators of Performance Measurement Company. Kajian Akuntansi, 2(1), pp.9–21.
Suharli, M., 2006. Studi Empiris Mengenai Pengaruh Profitabilitas,Leverage, dan Harga Saham terhadap Jumlah Dividen Tunai (Studi pada perusahaan yang terdaftar di Bursa Efek Jakarta periode 2002-2003). Jurnal Universitas Katolik Indonesia Atma Jaya.
Zohreh Anabestani and Mohammad Reza Shourvarzi, 2014. Cash Holdings , Firm Value and Corporate Governance. Middle-East Journal of Scientific Research, 21(10), pp.1737–1745.
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
The objectives of IJEBE are to establish an effective communication between policy makers, government agencies, academic and research institutions and professional’s person concerned with business, entrepreneurship and Small Medium Enterprise (SME) in a community.
Written application must be made to the Managing Editor for permission to reproduce any of the contents of the journal for use in other than course of instruction—e.g., inclusion in books of readings or in any other publications intended for general distribution. In consideration for the grant of permission by the journal in such instances, the applicant must notify the author(s) in writing of the intended use to be made of each reproduction. Normally, the journal will not access a charge for the waiver of copyright.
IJEBE publishes original papers, literature reviews, empirical studies, theoretical frameworks, case studies, and book reviews.
IJEBE is licensed under a Creative Commons Atribusi-noncommercial 4.0 Internasional License