The role of investment opportunity set on financially distressed firm’s value

  • Authors

    • Satria Tri Nanda
    • Raisya Zenita
    • Rizqa Anita
    • Muhammad Rasyid Abdillah
    https://doi.org/10.14419/ijet.v7i3.35.29277
  • Financial Distress, Firm Value, Investment Opportunity Set, Mediating, Warp PLS.

  • Abstract

    Sustainability of a company is one of them determined by financial performance that is perceived by firm value. Thus it is important to increase firm value as it can be used as signal to investors that the company is worthy. Investment opportunity set and financial distress are one of among factors that affect firm value. This study examines: (1) the influence of investment opportunity set on firm value, 2) the influence of financial distress on firm value and, 3) the role of investment opportunity set as a mediating variable on the relationship between financial distress and firm value. Using PLS Program Warp PLS 5.0., financial data gathered from 33 listing companies of real estate and property sector in Indonesia were analyzed. The results show that Investment opportunity set and financial distress affect firm value. Further analysis found that investment opportunity set play as a mediating variable that mediate the relationship between financial distress and firm value.

     

     

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  • How to Cite

    Tri Nanda, S., Zenita, R., Anita, R., & Rasyid Abdillah, M. (2018). The role of investment opportunity set on financially distressed firm’s value. International Journal of Engineering & Technology, 7(3.35), 118-121. https://doi.org/10.14419/ijet.v7i3.35.29277

    Received date: 2019-05-16

    Accepted date: 2019-05-16