Does economic policy uncertainty impact inventories and firm value? Evidence from the US economy

Corporate culture: The interview evidence

The study objects for determining whether there is an impact of financial leverage in the capital structure on firm market value, and to determine whether profitability and size of firms play a moderating effect role on the impact relationship of financial leverage on firm market value. The cluster sampling method is used in the selection of the sample among the listed firms at Amman Stock Exchange, where the utility-energy and the food-beverage listed firms are the two cluster, which is selected to constitute the sample. The secondary data covering the period 2011-2020, of the entire listed 5 utility-energy and 8 food beverage firms, had collected and used in the analysis and hypotheses testing. Tobin;s Q is used as an indicator for firm value, and debt ratio is used as a measure of debt in the capital structure mixing. Profitability is measured through the return on assets ratio, while the natural logarithms of total assets is used as a measure for firm size. Using the regression method, the study shows that debt in the capital structure has insignificant impact on firm value, while the results demonstrate that profitability and firm size, each of which, plays a moderating effect role in the effect relationship of debt in the capital structure, on firm market value.

Aims: Moderating effects is critical to corporate finance and governance. This study explores how gender diversity and firm size alter the influence between the key financial drivers of profitability, capital structure, and current ratio on firm value. Study Design: This Study is a quantitative analysis that employs a purposive sampling method, we used 92 companies as the population with 79 data were used as the sample in the basic materials sector listed on the Indonesia Stock Exchange from 2021 to 2023. Test carried out using MRA analysis and classical assumption test. Methodology: This study examines how capital structure, current ratio, and profitability on firm value are moderated by gender diversity and firm size. The analysis was conducted using SPSS 26. Results: The results of the study indicate that capital structure and profitability do not affect firm value, while the current ratio has a positive effect. Gender diversity as a moderator is able to strengthen the influence of capital structure and current ratio. However, gender diversity is able to weaken the effect of profitability. Furthermore, company size as a moderator is not able to moderate the effect of capital structure on firm value, but company size is able to strengthen the effect of profitability, and finally, company size is able to weaken the effect of current ratio on firm value. Conclusion: Practically, our findings can help shape policies that support financial stability, assist investors in their decision-making in the basic materials sector, and encourage management in devising impairment mitigation strategies, including improving gender equality in leadership. Theoretically, this shows the importance of moderating variables emphasizing that gender diversity is not an automatic guarantee of value, but rather a strategic investment that requires careful management to optimize its positive impact on firm performance and value.

This study examines the effects of product market competition on corporate investment and firm value and the moderating role of economic policy uncertainty on this relationship. The firm-level data of 1971 listed corporate firms for BRIC (Brazil, Russia, India, China) countries during 2009–2020 were used, totaling 23,652 observations. Using the GMM estimates, our results depict that product market competition significantly influences corporate investment and firm value in BRIC countries. The result also reveals that economic policy uncertainty plays a significant role in the impact of product market competition on corporate investment and firm value at Brazilian, Russian, Indian, and Chinese firms. The study’s findings contribute to the body of knowledge by providing new evidence on the relationship between PMC, corporate investment, and firm value. These findings are vital for policymakers and regulatory bodies to focus on economic uncertainty in a competitive environment without jeopardizing investment returns in emerging markets.

The company's policy on financial decisions taken by the company will determine the company's performance reflecting in the results of performance ratios will ultimately increase or decrease the firm value. The manufacturing sector in financial decisions is taken by manager focused on improving the company's internal performance and measured through profitability risk ratios through the Return on Assets (ROA) ratio, liquidity risk ratio through Current Ratio (CR), and leverage ratios through the Debt Equity Ratio (DER) so that achievement of the three ratios is expected to increase investor trust to increase the company value. This research was aimed to determine the ROA, CR and DER of Firm Value (FV). The population of this research was the automotive manufacturing company listed on the IDX. The method of determining the sample used purposive sampling based on the criteria determined with 12 automotive manufacturing companies as the sample. The secondary data research data was obtained from IDX (www. Idx.co.id). The hypothesis testing used was multiple analysis techniques with the SPSS version 23 application. The data testing used was t test, that ROA had a negative effect on FV with t count -4.333 <t table 2.0141, CR had a negative effect on FV with -5.632 <2.0141 and DER had an effect on FV with 9,289> 2.0141 and ROA, CR, and DER had an effect on FV with F count 51,872> F table 4.0670. The results proved that partially ROA had a negative effect on FV, CR hada negative effect on FV, DER had a positive effect on FV. While simultaneously ROA, CR and DER had an effect on FV.

The stakeholders expect that the firm's value will increase supported by increased profitability. This study aims to examine the impact of green accounting and corporate social responsibility on firm value with profitability as an intervening variable. This study uses quantitative methods with SPSS data analysis, involving 57 samples. The sample are basic material sector companies listed on the Indonesia Stock Exchange, with a research period from 2021 to 2023. The results show that only the direct relationship between profitability and firm value has a positive impact on corporate social responsibility, while the direct relationship between green accounting and corporate social responsibility does not impact firm value. The results also show that the relationship between green accounting and corporate social responsibility on firm value with the mediating variable of profitability does not an impact. This study also gives opportunities for further study of other factors that may affect the relationship between green accounting, corporate social responsibility, firm value, and profitability.

The present empirical paper aims to investigate the effect of a long-term company culture in terms of economic performance and firm value. Is it possible to track the cumulative knowledge (passed from father to son) into firm economic returns? The survey tests the hypothesis that the more experienced companies (higher firm age) will perform better than the others considering a set of performance indicators on a four years pattern (from firm value to EVA and VAIC). Comparing firm longevity with the performance indicators, but also monitoring many other corporate governance or ownership indicators, on a panel dataset of the top Italian wine companies. This methodology results in a deep analysis of the Italian wine business – family buy-out strategies, cooperatives. Family firms represent 42% of the panel, with more than 200 years of experience, a larger presence of women on board, a higher average age of the directors and a higher propensity to the production of grapes. The research findings support the hypothesis that a family firm add value over the generations through generating an internal cumulative knowledge process and a strong brand image. In addition, the presence of an external CEO is positively influencing performance (the Most Trusted Advisor). Firm value increases along with the number of family members within the board, to support the family logic and the social capital theories

The development of Resources Based-View in 2021 states that the firm's value creation is influenced by unique resources. This research aims to explore the use of intangible resources in three main industrial sectors in Indonesia to create firm value. The research method begins with the mapping of resources that meet valuable, rare, imperfect imitability, and non-substitution, forming a research model. These internal resources are measured using the company's financial ratio. The research data is in the form of secondary data for the period 2012-2022 which is analyzed using the panel data regression method and robustness test. The results found that each industry has different resources to increase the firm value. Internal resources; Intangible assets, firm innovation and managerial ability can create firm value in the basic materials industry. Meanwhile, in the Consumer Noncyclicals industry, only managerial ability affects the firm's value. Meanwhile, intellectual capital is not able to create firm value in Indonesia. The research implies that physical resources are still the main factor in creating a competitive advantage to achieve sustainable corporate value in Indonesia. The theoretical contribution is that there are still other applications of the RBV concept to create firm value.

<p>This study investigated the causal relationships among financial variables associated with firm value using a Causal Dynamic Bayesian Network (CDBN), which is an extension of the basic Bayesian network that captures both temporal and contemporaneous causal relationships. The CDBN model was constructed using a panel dataset of listed manufacturing companies in Korea over a 14-year period (2009–2022). By visualizing the interactions between financial factors, the model makes it easy to understand their dynamic and instantaneous relationships, offering valuable insights into corporate finance. Key findings in the model include evidence of autocorrelation in all dynamic variables, a lagged feedback loop between the intangible assets ratio and firm value, the widespread impact of the COVID-19 pandemic on the financial sector, and important causal relationships involving key financial metrics such as the fixed assets ratio, firm value, and return on assets ratio.</p>

IntroductionIn recent years, the growing emphasis on sustainability and ethical investment has prompted firms to integrate green accounting and financial management practices into their business strategies. However, evidence regarding the impact of green accounting and leverage on firm value, particularly within Islamic capital markets, remains inconclusive. This study investigates how green accounting and leverage affect firm value, with financial performance acting as a mediating variable, among basic materials firms listed on the Indonesia Sharia Stock Index (ISSI).ObjectivesThis research aims to analyze the direct and indirect effects of green accounting and leverage on firm value through financial performance. It also seeks to determine whether sustainability-oriented accounting practices contribute to firm valuation and to evaluate the mediating role of profitability in shaping these relationships within an Islamic financial context.MethodA quantitative research design was employed using panel data from six basic materials firms listed on the ISSI during 2019–2023. Green accounting was measured using environmental cost disclosure, leverage by the debt-to-equity ratio, financial performance by return on assets, and firm value by Tobin’s Q. Data were analyzed using path analysis and the Random Effect Model, supported by classical assumption and Sobel tests to assess mediation effects.ResultsThe findings indicate that green accounting and leverage do not have significant direct effects on either financial performance or firm value. However, financial performance significantly mediates the relationship between green accounting and firm value, suggesting that sustainability initiatives enhance firm valuation indirectly through profitability. In contrast, financial performance does not mediate the relationship between leverage and firm value. These results demonstrate that environmental accountability contributes to firm value when translated into financial efficiency but not through debt-financed strategies.ImplicationsThis study highlights the need for firms to integrate environmental expenditures as strategic investments rather than operational costs. It underscores the importance of aligning sustainability initiatives with financial management and governance frameworks to optimize firm value. Policymakers should strengthen regulatory incentives for environmental reporting and enhance investor awareness to bridge the gap between sustainability performance and market valuation.Originality/NoveltyThis study contributes to sustainability accounting and Islamic finance literature by empirically establishing the mediating role of financial performance in the relationship between green accounting and firm value. It provides new insights into how environmentally responsible practices create value in emerging Islamic capital markets.

The increasing complexity of corporate governance and financial strategies in the global market has raised concerns regarding their impact on firm value. Among the various factors influencing firm performance, tax avoidance, investment decisions, and agency costs are considered crucial elements. However, the relationships between these factors remain understudied, particularly in emerging markets like Indonesia. Understanding how tax avoidance and investment decisions affect firm value, and the role of agency costs as a moderating variable, is essential for enhancing corporate governance practices and strategic decision-making. This study aims to investigate the impact of tax avoidance and investment decisions on firm value, as well as the role of agency costs as a moderating variable. Firm value is measured using the Tobin's Q ratio, tax avoidance is assessed by the Effective Tax Rate (ETR), investment decisions are represented by the Price Earnings Ratio (PER), and agency costs are quantified by the Sales to Total Assets (STA) ratio. Panel data from industrial companies listed on the Indonesia Stock Exchange between 2018 and 2022 were analyzed using a quantitative approach, with panel data regression models and moderation tests. The findings reveal that agency costs significantly influence firm value. However, tax avoidance and investment decisions do not have a significant partial effect on firm value. The fixed effect model was selected as the best model based on the Chow and Hausman tests. The interaction test indicates that agency costs moderate the relationship between tax avoidance and firm value. This research contributes to both theoretical and practical understandings of how financial strategies and corporate governance affect firm value. Practically, the study highlights the importance of managing agency costs to enhance firm value, even though tax avoidance and investment decisions do not always show a direct significant effect.

The return on asset ratio is one way to analyze financial reports to attract investors' trust. Besides financial reports, good corporate governance (GCG) implementation is needed by a company to increase its performance and actualize the parties' interests in the company, therefore, has a positive impact on firm value. Investors solicitude the firm value concerning the stock. The higher the firm value, the more investors will invest. Firm value in this research was measured by price to book value (PBV). Facilities construction for covid-19 and the increased infrastructure planning made the basic and chemical industry sector have enhanced thus becoming this research object. Based on previous research, related to ROA, GCG, and firm value, has heterogeneous results, and writers want to reexamine to know the effect between ROA and GCG on PBV. This research uses an associative form, by collecting 385 populations of annual reports for the period 2016 till 2020 from www.idx.co.id and www.sahamok.net and selected by purposive-judgmental sampling into 200 annual reports. This research uses SPSS 24 application and the results showed the independent variables simultaneously and ROA partially have a significant effect on firrm value. However, independent commissioners and boards of directors do not significantly affect firm value.

This research aims to find out and analyze the impact of profitability and managerial ownership on firm value with company size as moderating variabel on manufactur industry listed based on Indonesia Stock Exchange during 2017-2019. Sample was selected with purposive sampling method with total sample of 72 manufacturing companies. Data gathered and sorted by using Excel program 2016 and data selected were processed using moderating regression analysis by using Eviews 10 program. Final result indicates from this research that profitability proxied by return on assets ratio has positive significant influence towards firm value, managerial ownership proxied by managerial ownership ratio positively does not have significant influence towards firm value, and company size proxied by size ratio positively does not have significant influence towards firm value. Result from moderating regression analysis has shown that company size have negative significant influnce on moderating the effect of profitability on firm value when the result also shows that company has negative but insignificant influence to moderate the effect of managerial ownership.

This research is based on the importance of companies knowing the factors that can affect the value of the firm in accordance with the development of the times so that the company can continue to survive in success in the long term. This study combines factors related to the company's non-financial performance, including sustainability performance such as ESG performance and the use of independent assurance in sustainability reports as well as other non-financial performance such as the quality of external audits, related party transactions, and political connections to determine the influence of these factors on the firm's value. The method used in this study is a panel data regression analysis method using e-views 9 with a sample of companies in the energy and basic materials sectors listed on the Indonesia Stock Exchange (IDX) in 2021-2023. The results of this study show that the quality of external audits, related party transactions, political connections, environmental performance (ESG_Environment), social performance to employees (ESG_Social Employees) and the use of independent assurance in sustainability reports have no effect on firm value while, social performance to the community (ESG_Social Community) and governance performance (ESG_Governance) have a positive effect on firm value.

This study examines the influence of leverage on firm value with profitability and firm size acting as influencing variables in non-cyclical sector companies listed on the Indonesia’s Capital Market between 2020 - 2023. This study uses 188 observation data from 47 companies selected through the purposive sampling. Tobin’s Q is utilized to calculate firm value, while leverage is evaluated using the ratio of debt to total assets. The Return on Assets (ROA) ratio measures profitability, whereas the natural logarithm of total assets is employed to assess firm size. Multivariate linear regression analysis in the first model without moderation shows that leverage and profitability have a considerable favorable impact on firm value. In contrast, firm size has a considerable adverse impact. In the second model, profitability was tested as a influencing variable in the link between leverage and firm value, but no significant moderating effect was found. The same thing is also found in the third model, where firm size as a moderating variable does not have a meaningful impact on the leverage-firm value connection. The study’s result demonstrates that although leverage, profitability, and company size impact firm value directly, profitability and firm size as moderating variables are not strong enough to affect the dynamics between leverage and firm value. Therefore, it is recommended that company management focus more on optimizing financial structure and operational efficiency without relying too much on company size growth to increase firm value.