Effect of Performance Factors to Increase Company Value

Authors

  • Djuwitawati Ratnaningtyas University Of Merdeka Malang Indonesia
  • Grahita Chandrarin University Of Merdeka Malang Indonesia
  • Edi Subiyantoro University Of Merdeka Malang Indonesia

DOI:

https://doi.org/10.31695/IJASRE.2021.34060

Keywords:

Environmental Performance, Financial Performance, Company Value Firm

Abstract

The value of the company is a direct response from investors to the company represented by the stock price. The rise and fall of stock prices in the capital market is an interesting phenomenon to talk about to the issue of fluctuations in the value of the company. Stock prices fell due to the latest sentiment data on manufacturing from China, the United States, and Europe. The MSCI Asia Pacific Index fell 1.2 percent in mid-trade, the index down 4 percent as investors continued to shed shares in emerging markets. The population of this research is 169 annual reports of manufacturing companies that go public and are listed on the Indonesia Stock Exchange in a row in the 2015-2019 period. The results of the study indicate that environmental performance affects firm value. Shareholders' support for environmental concerns has a positive impact on creating corporate value both internally and externally. Internally the value of the company increases through competitive advantage by increasing company profits, increasing sales turnover, lower production costs this is because the company can avoid unexpected costs due to labor, social or environmental contingencies, while externally shareholder support can increase share prices in the company. stock market. Financial performance affects firm value, the increase in company profitability shows better financial performance and better company prospects. Companies that have good prospects are highly favored by investors because they are considered to provide good returns.

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Published

2021-09-11

How to Cite

Djuwitawati Ratnaningtyas, Grahita Chandrarin, & Edi Subiyantoro. (2021). Effect of Performance Factors to Increase Company Value. International Journal of Advances in Scientific Research and Engineering (IJASRE), ISSN:2454-8006, 7(9), 43-47. https://doi.org/10.31695/IJASRE.2021.34060