THE EFFECT OF LIQUIDITY ON FIRM VALUE WITH FINANCIAL DISTRESS AND PROFITABILITY AS MEDIATION VARIABLES

Authors

  • Junus Paulus Patty Politeknik Negeri Ambon

DOI:

https://doi.org/10.29040/jie.v7i2.9568

Abstract

Good company conditions will attract investors to invest, good liquidity is important in investor assessment. Higher liquidity will reduce the possibility of a company experiencing financial distress. This study aims to examine the mediating effect of financial distress and profitability in the relationship between liquidity and firm value. The population and sample in this study are companies listed on the Indonesia Stock Exchange for the 2017-2021 period in the consumer and non-consumer goods (cyclical and non-cyclical) sectors with a total of 89 for the cyclical sector and 64 for the cyclical consumer sector. The results of the study show that partially liquidity affects financial distress. financial distress on firm value. liquidity on profitability, profitability has a positive and significant effect on firm value while liquidity has no effect on firm value. then financial distress is not able to mediate liquidity on firm value, but profitability is able to mediate liquidity on firm value. Keywords: Liquidity, Firm Value, Financial Distress, Profitability

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Published

2023-07-12

How to Cite

Patty, J. P. (2023). THE EFFECT OF LIQUIDITY ON FIRM VALUE WITH FINANCIAL DISTRESS AND PROFITABILITY AS MEDIATION VARIABLES. JURNAL ILMIAH EDUNOMIKA, 7(2). https://doi.org/10.29040/jie.v7i2.9568

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Vol. 7 No. 2 (2023): EDUNOMIKA

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