The effect of cash holding, profitability, and financial leverage on firm value with earnings management as moderating variables in manufacturing companies listed on the Indonesia stock exchange

Doddy Irawan; Marlina Widiyanti; Luk Luk Fuadah; Mohamad Adam

doi:10.21744/ijbem.v5n1.1842

Authors

Doddy Irawan
doddy_kaes@yahoo.com
Master of Management, Sriwijaya University, Palembang, Indonesia
Marlina Widiyanti Lecturer of Master Management, Economic Faculty, Sriwijaya University, Palembang, Indonesia
Luk Luk Fuadah Lecturer of Master Management, Economic Faculty, Sriwijaya University, Palembang, Indonesia
Mohamad Adam Lecturer of Master Management, Economic Faculty, Sriwijaya University, Palembang, Indonesia

Keywords:

cash holding, earnings management, financial leverage (DER), firm value (PBV), profitability (ROA)

Abstract

This study aims to determine the effect of cash holding, profitability (ROA), financial leverage (DER) on firm value (PBV) with earnings management as a moderating variable in manufacturing companies listed on the Indonesia Stock Exchange. The sample of this research is 24 companies in the manufacturing sector with a research period from 2015-2020. The data analysis technique used in this study is moderated regression analysis (MRA). The results showed that cash holding and earnings management did not affect firm value (PBV). Profitability, as measured by return on assets (ROA) and financial leverage as measured by debt to equity ratio (DER), has a significant positive effect on firm value (PBV). The results also conclude that earnings management does not have a moderating role in the effect of cash holding, profitability (ROA), financial leverage (DER) on firm value (PBV).

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