Cost of capital and firm value: Evidence from Indonesia
| Autor: | Augustina Kurniasih, Muhamad Rustam, Heliantono, Endri Endri |
|---|---|
| Jazyk: | angličtina |
| Rok vydání: | 2022 |
| Předmět: | |
| Zdroj: | Investment Management & Financial Innovations, Vol 19, Iss 4, Pp 14-22 (2022) |
| Druh dokumentu: | article |
| ISSN: | 1810-4967 1812-9358 |
| DOI: | 10.21511/imfi.19(4).2022.02 |
| Popis: | Cost and capital structure are needed to evaluate the feasibility of the investments made by a company. This study aims to estimate and analyze the effect of the component of cost of capital (COC) and capital structure (CS) on firm value. Pulp & Paper companies listed on the Indonesia Stock Exchange (IDX) became the research sample for the 2013–2020 period. The research method applied is a moderation regression analysis approach. The empirical findings of the study prove that firm value is not influenced by the cost of debt (COD), while the cost of equity (COE) has a negative effect, and COC is positive. COC is a combination of the use of debt and equity, modeling by adding a CS variable as a moderating variable; this leads to the conclusion that COD and COE have a negative effect on firm value, whereas COC and CS have a positive effect. The finding of the role of CS as a moderating variable reveals that CS is a quasi-moderator variable and plays a role in increasing. |
| Databáze: | Directory of Open Access Journals |
| Externí odkaz: |
|