Does Return on Assets (ROA) As Intervening Variable?
Corresponding Author(s) : Eny Maryanti
Prosiding International Conference on Sustainable Innovation (ICoSI),
Vol. 3 No. 2 (2023)
Abstract
Introduction - The main goal of the company is to increase the value of the company through increasing the prosperity of the shareholders. Indicators to measure the value of a company can be seen from the amount of company profits earned in a certain period of time. Purpose - This study aims to determine the effect of total assets turnover, sales growth and net profit margin on firm value with return on assets as an intervening variable in Consumer Goods Industry companies listed on the Indonesia Stock Exchange for the 2017-2019 period. Methodology/Approach - The population of this study is the Consumer Good Industry companies listed on the Indonesia Stock Exchange for the 2017-2019 period totaling 140 companies. Based on purposive sampling criteria, 45 companies were obtained. This research uses smartpls 3 (Partial Least Square) data analysis test. Findings - The results of the study prove that: total assets turnover and net profit margin have a significant positive effect on return on assets. Sales growth has no effect on return on assets. Total assets turnover and sales growth have no effect on firm value. Return on assets has a significant positive effect on firm value. Net profit margin has a significant negative effect on firm value. Return on assets is an intervening variable between total assets turnover on firm value and net profit margin on firm value. Return on assets cannot be used as an intervening variable between sales growth and firm value. Originality/ Value/ Implication – This study uses consumer Goods Industry companies as the subjects of this research. The consumer goods industry is one of the sector companies listed on the Indonesia Stock Exchange which has good prospects and develops from time to time.
Keywords
Download Citation
Endnote/Zotero/Mendeley (RIS)BibTeX