International Journal of Academic Research in Business and Social Sciences

search-icon

Macroeconomy and Company’s Policy on Firm Value: An Interactive Effect on Manufacturing Companies Listed in Idx Period 2013-2017

Open access
The purpose of this study to answer some questions on the factors impact on firm value in Indonesia Stock Exchange. This study, in specific, aims to test the gradual effect of macroeconomy and policy of the company on firm value. The concept used in measuring the fundamental macroeconomic factors of interest rates and exchange rates is the concept of the sensitivity of the interest rate and exchange rate factors of each company. While the concept used to measure company policy is capital expenditure and to measure company value is Tobins'q. This study used the samples of the manufacture industries from period 2013-2017, which the stock actively traded in Indonesia Stock Exchange (BEI). The sampling was purposive, and the analytical technique was SEM-PLS. The research outcome that the interest rate has a significant positive effect on firm value; the exchange rate has a significant negative effect on firm value, and the capital expenditure has a significant negative effect on firm value.
AnasAl & Laham. (2013). The effect of financial & systematic risk on stock returns in the Amman stock exchange. Finance & Accounting, 4(6).
Annuar, H. A., Salihu, I. A., & Obid, S. N. S. (2014). Corporate Ownership, Governance and Tax Avoidance: An Interactive Effects. Procedia - Social and Behavioral Sciences. https://doi.org/10.1016/j.sbspro.2014.11.063
Chung, K. H., & Pruit. (1994). A simple approximation of Tobins’q. Financial Management, 23, 70–74.
Riyatno, D. (2007). Pengaruh suku bunga Sertifikat Bank Indonesia dan Nilai kurs terhadap risiko sistematis di BEI. Keuangan Dan Bisnis, 5(1), 24–40.
Hamrita, M. E., & Trifi, A. (2011). The relationship between interest rate, exchange rate and stock price: A wavelet analysis. International Journal of Economics and Financial Issues.
Ghozali, I. (2002). Analisis pengaruh kinerja keuangan perusahaan dengan alat ukur EVA, MVA dan ROA terhadap return saham pada perusahaan manufaktur di BEI. Akuntansi-Bisnisn Dan Manajemen, 9(1), 18–33.
Hartono, J. (2010). Teori Portofolio dan analisis Investasi. Fak Ekonomi Univ. Gajah Mada.
Kasman, S., Vardar, G., & Tunç, G. (2011). The impact of interest rate and exchange rate volatility on banks’ stock returns and volatility: Evidence from Turkey. Economic Modelling. https://doi.org/10.1016/j.econmod.2011.01.015
Marling., and Emanuelsson. (2012). The Markowitz Portfolio Theory. Survey Online Http://Www. Math. Chalmers. Se.
Parlapiano, F., Alexeev, V., & Dungey, M. (2017). Exchange rate risk exposure and the value of European firms. European Journal of Finance. https://doi.org/10.1080/1351847X.2015.1072570
Sudjono. (2002). Analisis keseimbangan dan hubungan simultan antara variabel ekonomi makro terhadap indeks harga saham di bursa efek jakarta dengan metode VAR (Vector Autoregression) dan ECM (Error Correction Model). Riset Ekonomi Dan Manajemen, 2(3), 81–97.
Villalonga, B. A. R. (2004). How do family ownership, management and controlaffect firm value?, MA 02163(HArvard Business School. The Warton school Univerity of Pennsylvania, PA 19104).
Wijaya, A. M., Widyastuti, T., & Mappadang, A. (2019). Macroeconomy and Company’s Policy on Firm Value: An Interactive Effect on Manufacturing Companies Listed in Idx Period 2013-2017. International Journal of Academic Research in Business and Social Sciences, 9(9), 1046–1060.
In-Text Citation: (Wijaya, Widyastuti, & Mappadang, 2019)
To Cite this Article: Wijaya, A. M., Widyastuti, T., & Mappadang, A. (2019). Macroeconomy and Company’s Policy on Firm Value: An Interactive Effect on Manufacturing Companies Listed in Idx Period 2013-2017. International Journal of Academic Research in Business and Social Sciences, 9(9), 1085–1099.