Abstract

This study aims to analyze the impact of fundamental and technical factors on firm value with investment decisions as a mediating variable. The samples were 12 companies at agricultural sector in the Indonesia Stock Exchange. The results show that leverage had a negative and significant effect on investment decisions and firm value. Profitability and trading volume had a positive and significant effect on investment decisions and firm value. Previous stock prices did not have any significant effect on investment decisions but a positive and significant effect on firm value. Investment decisions had a positive and significant effect on firm value. Leverage had a negative and significant effect on firm value through investment decisions. Profitability and stock trading volume had a positive and significant effect on firm value through investment decisions. Previous stock prices did not have any significant effect on firm value through investment decisions.

Highlights

  • The agricultural sector plays a very important role in the Indonesian economy

  • This study aims to analyze the impact of fundamental and technical factors on firm value with investment decisions as a mediating variable

  • The results show that leverage had a negative and significant effect on investment decisions and firm value

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Summary

Introduction

The agricultural sector plays a very important role in the Indonesian economy. Technological advances and growth in other sectors, especially in relation to the increasing world demand for food and various derivatives of agricultural products, both horticulture and food. The growth in the export value of agricultural products in 2014 and 2016 decreased by 6.26 percent and 9.98 percent, respectively. The growth in the export value of agricultural products in 2015 and 2017 showed positive performance, namely increasing by 10.47 percent and 9.43 percent, respectively. The export value of agricultural products has again decreased by 6.54 percent in 2018 It has increased again in 2019 by 5.29 percent. The agricultural sector is one of the important sectors in economic development, both at the national and regional levels. The agricultural sector supports the manufacturing sector, which is one of the main sectors supporting the country's economy

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