Investor Decision in Estimating the Effect of Earning Persistence, Financial Leverage, Foreign Ownership Toward Company Reputation and Company Value

Robert Jao, Djabir Hamzah, Abdul Rakhman Laba and Mediaty

International Journal of Financial Research, 2020, vol. 11, issue 4, 453-461

Abstract: Understanding company effort on managing corporate reputation and corporate value are challenging tasks among investors. This paper provides an estimated relationship of earning persistence, financial leverage, and foreign ownership on corporate reputation and corporate value on non-financial companies listed in Indonesian Stock Exchange. Data are collected from a five-year observation period, ranging 2014 to 2018. A Non probability sampling technique is purposively used to determine the data quality. The collected data are analyzed and processed using SEM method. This study provides a qualitative result showing the relationship among the variables. The financial leverage has no significant effect on company value. In addition, financial leverage also has no significant impact on company reputation compared to foreign ownership toward company reputation. Earning persistence has significantly affected the company value followed by income variability with equal effect toward corporate reputation. Future study can add additional independent variables such as free cash flow and growth opportunities to expand this study.

Keywords: profit persistence; financial leverage; foreign ownership of company reputation; company value (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.sciedu.ca/journal/index.php/ijfr/article/view/18349/11278 (application/pdf)
http://www.sciedu.ca/journal/index.php/ijfr/article/view/18349 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:jfr:ijfr11:v:11:y:2020:i:4:p:453-461

DOI: 10.5430/ijfr.v11n4p453

Access Statistics for this article

International Journal of Financial Research is currently edited by Gina Perry

More articles in International Journal of Financial Research from International Journal of Financial Research, Sciedu Press
Bibliographic data for series maintained by Gina Perry ().