Effect of Financial Distress and Firm Size to Firm’s Intrinsic Value and Profitability as Intervening Variable on Property and Real Estate Sector

Anthony Hardinal Sijabat, Khaira Amalia Fachrudin

2018

Abstract

The intrinsic value of a firm is the fair value of all future net cash flows resulted from a business. The purpose of this research is to examine the effect of financial distress and firm size on profitability; the effect of financial distress, firm size, and profitability on intrinsic value of firm; and the indirect effect of financial distress and firm size on intrinsic value of firm by profitability as intervening variable. The population of the research was the companies in property and real estate sector listed in BEI (Indonesia Stock Exchange). The statistics method which used to test hypotheses is path analysis. The result show that financial distress had a negative and significant influence on profitability, firm size had a positive and insignificant influence on profitability, financial distress had a negative and insignificant influence on intrinsic value, firm size and profitability had a positive and significant influence on intrinsic value, profitability could mediate the correlation of financial distress with intrinsic value of firm, and profitability could not mediate the correlation of firm size with intrinsic value of firm.

Paper Citation

in Harvard Style

Hardinal Sijabat A. and Amalia Fachrudin K. (2018). Effect of Financial Distress and Firm Size to Firm’s Intrinsic Value and Profitability as Intervening Variable on Property and Real Estate Sector. In Proceedings of the International Conference on Natural Resources and Sustainable Development - Volume 1: ICNRSD, ISBN 978-989-758-543-2, pages 45-51. DOI: 10.5220/0009897300002480

in Bibtex Style

@conference{icnrsd18,
author={Anthony Hardinal Sijabat and Khaira Amalia Fachrudin},
title={Effect of Financial Distress and Firm Size to Firm’s Intrinsic Value and Profitability as Intervening Variable on Property and Real Estate Sector},
booktitle={Proceedings of the International Conference on Natural Resources and Sustainable Development - Volume 1: ICNRSD,},
year={2018},
pages={45-51},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0009897300002480},
isbn={978-989-758-543-2},
}

in EndNote Style

TY - CONF

JO - Proceedings of the International Conference on Natural Resources and Sustainable Development - Volume 1: ICNRSD,
TI - Effect of Financial Distress and Firm Size to Firm’s Intrinsic Value and Profitability as Intervening Variable on Property and Real Estate Sector
SN - 978-989-758-543-2
AU - Hardinal Sijabat A.
AU - Amalia Fachrudin K.
PY - 2018
SP - 45
EP - 51
DO - 10.5220/0009897300002480