Author(s): Hendi Prihanto, Usmar
The study aims to analyze and explain the direct and indirect effects of firm value through capital structure, working capital, RoR, NPM and earnings quality, which act as intervening variables in predicting substantial weight and using control variables Gross Profit RoA, RoE and earnings persistence. The research population is comprised of all manufacturing enterprises that were listed on the IDX from 2016 to 2018, and were chosen through a purposive selection technique. Multiple linear regression hypothesis testing and path analysis modeling on intervening factors were used to evaluate the data, and robustness tests on firm value using a series of control variables. The findings indicated that the indirect influence of capital structure and NPM had a considerable effect on earnings quality, while working capital and ROR had no significant impact. Then a substantial direct effect on firm value is obtained from working capital, ROR and NPM, while earnings quality and capital structure are unnecessary. In the control variables, gross profit margin, RoE, RoA and earnings persistence significantly affect firm value. The research implications can be a reference in developing optimal models through testing schemes with a more modern research paradigm following market phenomena, in maximizing company value that prevents and avoids agency conflicts, by preventing information asymmetry as much as possible and determining investments for relevant companies in making decisions. Future strategic decisions.