The Effect of Asset Structure and Market Risk on Company Value with Growth as an Intervening Variable in Multinational Manufacturing Companies on the Indonesia Stock Exchange
Introduction
In the business world, company value is a crucial indicator that reflects a company's future performance and prospects. The structure of assets and market risk are key factors that can affect a company's value. This study focuses on the analysis of the effect of asset structure and market risk on company value, with company growth as an intervening variable. The focus is on multinational manufacturing companies listed on the Indonesia Stock Exchange during the 2015 to 2018 period.
Research Background
Company value is an essential aspect of a company's performance, and it is influenced by various factors, including asset structure and market risk. Asset structure refers to how companies manage and utilize their assets to achieve business goals, while market risk involves uncertainty that can affect a company's financial performance due to market fluctuations. Understanding the relationship between these factors is crucial for company management to formulate effective strategies to deal with market fluctuations and optimize company value.
Methodology
This study uses secondary data taken from the audited company's financial statements. Samples taken are companies listed on the Indonesia Stock Exchange, and analysis is carried out using Partial Least Square (PLS) to identify the relationship between variables. Through this statistical approach, researchers can explore the complexity of existing relationships and provide a deeper explanation.
Main Findings
The results of this study showed some interesting findings:
Effect of Asset Structure : Although there is a positive influence of the asset structure on company growth, the effect is not significant. This shows that good asset management does not necessarily have a strong direct impact on the expected growth. However, it is essential to note that asset structure is still a crucial factor in company performance, and companies should continue to focus on managing their assets effectively.
Significant Market Risk : Conversely, market risk is proven to have a positive and significant influence on company growth. This shows that well-managed market dynamics can encourage better growth, and companies can take advantage of opportunities in the market. Companies should be proactive in managing market risk to maximize their growth potential.
Company Value : Asset structure also has a positive but not significant effect on company value, while market risk shows negative and significant effects. This shows that the risks arising from market conditions can reduce the attractiveness of the company's value in the eyes of investors. Companies should be cautious of market risks and take steps to mitigate them.
The Role of Company Growth : Company growth has proven to have a positive and significant effect on company value. However, when measured as an intervening variable, company growth is unable to mediate the effect of asset structure and market risk on company value. This suggests that company growth is an essential factor in company value, but it is not the only factor.
Analysis and Implications
This finding indicates that companies need to be more careful in managing market risk to maximize company value. Although the asset structure has good potential, companies should not only focus on asset management but must also pay attention to how market conditions and other external factors affect their performance.
In addition, the importance of company growth as a significant factor for the company's value shows that companies must invest not only in physical assets but also in innovation and growth strategies that can increase their position in the market. Companies should prioritize company growth and develop strategies to achieve it.
Conclusion
This research provides important insights for company management in formulating effective strategies to deal with market fluctuations and optimize company value. By understanding the relationship between asset structure, market risk, and company growth, managers can make more appropriate decisions to improve the company's performance and attractiveness in the eyes of investors.
Recommendations
Based on the findings of this study, the following recommendations are made:
Companies should prioritize company growth and develop strategies to achieve it.
Companies should be proactive in managing market risk to maximize their growth potential.
Companies should not only focus on asset management but must also pay attention to how market conditions and other external factors affect their performance.
Companies should invest in innovation and growth strategies that can increase their position in the market.
Limitations
This study has some limitations that should be noted. The study only focuses on multinational manufacturing companies listed on the Indonesia Stock Exchange during the 2015 to 2018 period. The study also uses secondary data, which may have limitations in terms of accuracy and completeness. Future studies should aim to overcome these limitations and provide a more comprehensive understanding of the relationship between asset structure, market risk, and company growth.
Future Research Directions
Future research should aim to explore the relationship between asset structure, market risk, and company growth in other industries and contexts. Additionally, future research should aim to develop more comprehensive models that can explain the complex relationships between these factors.Frequently Asked Questions (FAQs) about the Effect of Asset Structure and Market Risk on Company Value with Growth as an Intervening Variable
Q: What is the main focus of this study?
A: The main focus of this study is to analyze the effect of asset structure and market risk on company value, with company growth as an intervening variable, in multinational manufacturing companies listed on the Indonesia Stock Exchange.
Q: What is asset structure, and how does it affect company value?
A: Asset structure refers to how companies manage and utilize their assets to achieve business goals. While asset structure has a positive influence on company growth, its effect on company value is not significant. This means that good asset management does not necessarily have a strong direct impact on the expected growth.
Q: What is market risk, and how does it affect company value?
A: Market risk involves uncertainty that can affect a company's financial performance due to market fluctuations. Market risk has a positive and significant influence on company growth, indicating that well-managed market dynamics can encourage better growth. However, market risk also shows negative and significant effects on company value, suggesting that the risks arising from market conditions can reduce the attractiveness of the company's value in the eyes of investors.
Q: What is the role of company growth in the relationship between asset structure, market risk, and company value?
A: Company growth has a positive and significant effect on company value. However, when measured as an intervening variable, company growth is unable to mediate the effect of asset structure and market risk on company value. This suggests that company growth is an essential factor in company value, but it is not the only factor.
Q: What are the implications of this study for company management?
A: This study suggests that companies need to be more careful in managing market risk to maximize company value. Companies should not only focus on asset management but must also pay attention to how market conditions and other external factors affect their performance. Additionally, companies should prioritize company growth and develop strategies to achieve it.
Q: What are the limitations of this study?
A: This study has some limitations that should be noted. The study only focuses on multinational manufacturing companies listed on the Indonesia Stock Exchange during the 2015 to 2018 period. The study also uses secondary data, which may have limitations in terms of accuracy and completeness. Future studies should aim to overcome these limitations and provide a more comprehensive understanding of the relationship between asset structure, market risk, and company growth.
Q: What are the future research directions based on this study?
A: Future research should aim to explore the relationship between asset structure, market risk, and company growth in other industries and contexts. Additionally, future research should aim to develop more comprehensive models that can explain the complex relationships between these factors.
Q: What are the practical implications of this study for investors and stakeholders?
A: This study provides important insights for investors and stakeholders to understand the relationship between asset structure, market risk, and company growth. By understanding these relationships, investors and stakeholders can make more informed decisions about investing in companies and assessing their value.
Q: What are the potential applications of this study in the field of finance and accounting?
A: This study has potential applications in the field of finance and accounting, particularly in the areas of asset management, risk management, and company valuation. The study's findings can be used to develop more effective strategies for managing assets, mitigating market risks, and maximizing company value.