Revaluation Asset Determinants toward Company’s Value
1Irma Sari Permata,2 Kurnia Heriansyah
1,2Faculty of Economics and Business, Universitas Pancasila. Jalan Raya Lenteng Agung, South Jakarta, Indonesia
https://doi.org/10.47191/jefms/v5-i1-29ABSTRACT:
This study’s objective is twofold. The first is to determine the effect of the investment opportunity set, leverage, and liquidity on fixed asset revaluation decisions. The second objective is to examine the effect of fixed asset revaluation decisions on firm value listed on the Indonesia Stock Exchange. The research method used is a quantitative method with statistical hypothesis testing through multiple linear regression (simultaneous and partial significance tests). The number of samples studied was 110, using panel data from 2016–2019. The results of the first stage of the study show that at the 5% significance level, the investment opportunity set and partial leverage have no effect on the revaluation of fixed assets, but liquidity has a significant negative effect on the revaluation of fixed assets. Meanwhile, the results of the second stage of the study show that the investment opportunity set has no significant effect on firm value, but leverage, liquidity, and fixed asset revaluation partially affect firm value.
KEYWORDS:
Revaluation, Fixed Asset, Company Value, Investment Opportunity Set, Leverage, Liquidity.
REFERENCES:
1) Asgharian, Hossein, (2003), Are Highly Leveraged Firms More Sensitive To An Economic Downturn?,The Eouropean Journal of Finance.
2) Barac, Z. A., dan Sodan, Slavko., (2011), Motives For Aset Revaluation Policy Choice In Croatia. Croatian Operational Research Review (Crorr), Vol. 2.
3) Brigham, Eugene F dan Houston. (2006). Fundamental of Financial Management: Dasar - Dasar Manajemen Keuangan. Edisi 10. Jakarta: Salemba Empat.
4) Cahan, S. F., Courtenay, S. M., Gronnewoller, P. L., dan Upton, D .R (2004). Value Relevance Of Mandated Comprehensive Income Disclosures. Journal of Business Finance and Accounting, 27 (9 dan 10), 1233-1265.
5) Choi, Y. Peasnell, K dan Toniato, J., (2013), Has the IASB Been Successful in Making Accounting Earnings More Useful for Prediction and Valuation? UK Evidence, Journal of Business Finance dan Accounting. Volume 40, Issue 7-8, pages 741–768.
6) Manly, F. (2008), Motives For Fixed-Asset Revaluation: An Empirical Analysis, Journal of Business Finance and Accounting, 34(7-8), pp. 1025 – 1050.
7) Peasnell, K. V. (2000), Fixed Aset Revaluation And Equity Depletion In UK. Journal of Business Finance and Accounting, 27(3-4), pp. 359 – 394.
8) Seng, Dyna dan Jiahua Su, (2010). Managerial Incentives Behind Fixed Aset Revaluation: Evidence from New Zealdan Firms, International Journal of Business Research, Department of Accountancy and Business Law, Working paper series, No 3.
9) Tay, Ink. (2009). Fixed Aset Revaluation: Management Incentives and Market Reaction. Lincoln University., Canterbury, New Zealdan.
10) Wahyudi, (2012). Pengaruh Profitabilitas, Likuiditas, dan Leverage terhadap Nilai Perusahaan. Program Pasca Sarjana Universitas Muhammadiyah, Surakarta.
