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A Model of Agency Theory-Based Firm Value Improvement Through Cash Holding with Firm Size and Profitability as Control Variable

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Complex, Intelligent and Software Intensive Systems (CISIS 2021)

Part of the book series: Lecture Notes in Networks and Systems ((LNNS,volume 278))

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Abstract

The purpose of this study is to determine and analyze the effect of cash holding, firm size, and profitability on the enhancement of firm value and corporate governance as moderating. The research belongs to explanatory research with manufacturing companies in the consumer goods sub-sector as the sample. The companies listed on the Indonesia Stock Exchange during 2015–2019, taken by purposive sampling method. The results of this study indicated that cash holding had a negative and significant effect on firm value. Meanwhile, firm size and profitability had a positive and significant effect on firm value. Subsequently, corporate governance can moderate the effect of cash holding on the enhancement of firm value.

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Authors and Affiliations

  1. Department of Management, Faculty of Economics, Universitas Islam Sultan Agung, Jalan Raya Kaligawe KM 4, Semarang, Indonesia

    Ibnu Khajar

  2. Faculty of Economics, Universitas Islam Sultan Agung, Jalan Raya Kaligawe KM 4, Semarang, Indonesia

    Ayu Rakhmawati Kusumaningtyas

Authors
  1. Ibnu Khajar
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  2. Ayu Rakhmawati Kusumaningtyas
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Correspondence to Ibnu Khajar .

Editor information

Editors and Affiliations

  1. Department of Information and Communication Engineering, Fukuoka Institute of Technology, Fukuoka, Japan

    Leonard Barolli

  2. Department of Information Security Engineering, Soonchunhyang University, Asan, Korea (Republic of)

    Kangbin Yim

  3. Faculty of Bussiness Administration, Rissho University, Tokyo, Japan

    Tomoya Enokido

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Khajar, I., Kusumaningtyas, A.R. (2021). A Model of Agency Theory-Based Firm Value Improvement Through Cash Holding with Firm Size and Profitability as Control Variable. In: Barolli, L., Yim, K., Enokido, T. (eds) Complex, Intelligent and Software Intensive Systems. CISIS 2021. Lecture Notes in Networks and Systems, vol 278. Springer, Cham. https://doi.org/10.1007/978-3-030-79725-6_51

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