Title: Internal determinants of company value with leverage as a moderating variable

Authors: Dewi Anggraini; Zulkifli

Addresses: Master Accounting Program, Mercu Buana University, Jakarta, Indonesia ' Management Program, Faculty of Economics and Business, Mercu Buana University, Jakarta, Indonesia

Abstract: Cement companies (CC) support the role of government in building community welfare which has a direct impact on the company's value. This research identified internal factors that influence the value of the company with the leverage as a moderating variable. The population is five cement companies (CCs) listed on the Indonesia Stock Exchange (IDX). The data analysis technique used panel data regression analysis with a moderated regression analysis (MRA) model and analysed using eviews application. The results showed that return on equity (ROE) has a positive and significant effect on Tobin's Q. Debt to equity ratio (DER), can be expressed as a variable that moderates ROE, has a negative and significant impact on Tobin's Q. As practical implications, companies need to analyse and evaluate the DER ratio along with the high value of DER, because DER can affect ROE on Tobin's Q.

Keywords: debt to equity ratio; DER; return on equity; ROE; Tobin's Q.

DOI: 10.1504/IJENM.2021.119661

International Journal of Enterprise Network Management, 2021 Vol.12 No.4, pp.312 - 324

Received: 26 Aug 2019
Accepted: 03 Feb 2020

Published online: 14 Dec 2021 *

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