Proceedings of the 1st UMSurabaya Multidisciplinary International Conference 2021 (MICon 2021)

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Strategic to Increase Firm Value with Earning Per Share and Current Ratio

Authors
Marista Oktaviani1, *, Tyasha Ayu Melynda Sari1, Budi Wahyu Mahardhika1
1Universitas Muhammadiyah Surabaya, Surabaya, Indonesia
*Corresponding author. Email: maristaoktaviani@fe.um-surabaya.ac.id.com
Corresponding Author
Marista Oktaviani
Available Online 13 May 2023.
DOI
10.2991/978-2-38476-022-0_30How to use a DOI?
Keywords
current ratio; earnings per share; firm value; return on equity
Abstract

This study aims to determine the strategy of increasing firm value with earnings per share and current ratio. The research method uses descriptive statistics, and SEM PLS analysis uses a moderation model. The sample of this research is the consumer goods industry listed on the Indonesia Stock Exchange for the 2016–2018 period. The sampling criteria used purposive sampling with 33 observations. The results of the study show that model I consists of Earning per share on firm value with a return of equity as moderating coefficient −0.47 and p-value < 0.01, which explains that return of equity weakens the relationship between Earning per share firm value. Model II has the result that the current ratio to solid deal with the return of equity as moderating is a coefficient of 0.36 and p-value < 0.01, which explains that the return of equity strengthens the relationship between the current ratio and firm value. Based on the results of the study that Model II states that companies with higher current ratios lead to the increased investor and creditor confidence in the company so that the company has the motivation to increase the value of the company to pay off the company’s debts and can reduce the taxes that the company must pay.

Copyright
© 2023 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 1st UMSurabaya Multidisciplinary International Conference 2021 (MICon 2021)
Series
Advances in Social Science, Education and Humanities Research
Publication Date
13 May 2023
ISBN
978-2-38476-022-0
ISSN
2352-5398
DOI
10.2991/978-2-38476-022-0_30How to use a DOI?
Copyright
© 2023 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Marista Oktaviani
AU  - Tyasha Ayu Melynda Sari
AU  - Budi Wahyu Mahardhika
PY  - 2023
DA  - 2023/05/13
TI  - Strategic to Increase Firm Value with Earning Per Share and Current Ratio
BT  - Proceedings of the 1st UMSurabaya Multidisciplinary International Conference 2021 (MICon 2021)
PB  - Atlantis Press
SP  - 277
EP  - 282
SN  - 2352-5398
UR  - https://doi.org/10.2991/978-2-38476-022-0_30
DO  - 10.2991/978-2-38476-022-0_30
ID  - Oktaviani2023
ER  -