Firm Value the Moderating Role of Risk Management: Growth, Size, Age, and Profitability

Kiko Julito, Reynold Ticoalu

2022

Abstract

Firm value is one of the important indicators in describe the condition of the company. This study examines the effects of firm growth, firm size, firm age, and firm profitability on firm value. In addition, this study also includes risk management as a moderating variable in the relationship between firm growth, firm size, firm age, and firm profitability on firm value. This study uses data from banking companies listed on the Indonesia Stock Exchange with an observation period of 2016–2021 with a total of 234 observations through purposive sampling. A panel data regression test using the fixed effect model is used to test the hypothesis. The test results suggest that firm growth and firm age have a positive effect on firm value, while firm size and firm profitability don’t affect firm value. Besides that, risk management assessment was able to strengthen the positive influence of firm size and firm profitability on firm value partially, weakened the effect of firm age on firm value, and did not strengthen the effect of firm growth on firm value. This research indicates that management needs to increase growth and maintain business continuity because it’s an indicator of assessment by the market.

Paper Citation

in Harvard Style

Julito K. and Ticoalu R. (2022). Firm Value the Moderating Role of Risk Management: Growth, Size, Age, and Profitability. In Proceedings of the 3rd International Seminar and Call for Paper (ISCP) UTA ’45 Jakarta - Volume 1: ISCP UTA'45 Jakarta; ISBN 978-989-758-654-5, SciTePress, pages 87-98. DOI: 10.5220/0011976600003582

in Bibtex Style

@conference{iscp uta'45 jakarta22,
author={Kiko Julito and Reynold Ticoalu},
title={Firm Value the Moderating Role of Risk Management: Growth, Size, Age, and Profitability},
booktitle={Proceedings of the 3rd International Seminar and Call for Paper (ISCP) UTA ’45 Jakarta - Volume 1: ISCP UTA'45 Jakarta},
year={2022},
pages={87-98},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0011976600003582},
isbn={978-989-758-654-5},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 3rd International Seminar and Call for Paper (ISCP) UTA ’45 Jakarta - Volume 1: ISCP UTA'45 Jakarta
TI - Firm Value the Moderating Role of Risk Management: Growth, Size, Age, and Profitability
SN - 978-989-758-654-5
AU - Julito K.
AU - Ticoalu R.
PY - 2022
SP - 87
EP - 98
DO - 10.5220/0011976600003582
PB - SciTePress