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Masters Thesis | Financial Management | Indonesia | Volume 12 Issue 4, April 2023 | Rating: 5.5 / 10

The Influence of Liquidity and Solvability on Company Value with Profitability as a Mediation Variable

Nadya Grilseda | GM Djoko Hanantijo

Abstract: This study aims to examine and analyze the effect of the Current Ratio and Debt-to-Equity Ratio on Price to Book Value with Return On Equity as a mediating variable for listed crude palm oil companies listed on the Indonesia Stock Exchange. The sample used 13 companies during the 2017-2021 period. While the data analysis method used in this research is Path Analysis with data processing software using Eviews 10. The results showed that the current ratio has no significant effect on return on equity, debt-to-equity ratio has a significant negative effect on return on equity, partially current ratio and debt-to-equity ratio have a significant positive effect on the price-to-book value, return on equity has no significant effect on the price-to-book value. And that return on equity is not able to mediate the effect of the current ratio and debt-to-equity ratio to price-to-book value.

Keywords: Liquidity, Solvency, Profitability, and Firm Value

Edition: Volume 12 Issue 4, April 2023,

Pages: 59 - 68