Abstract
Banking companies that have gone public has the goal of increasing prosperity of the owners or shareholders by increasing the value of the company. The value of the company is very important because of the high value of the company which will be followed by a high prosperity shareholders. This study aimed to analyze the influence of asset structure, capital structure, risk management and good corporate governance on financial performance and value of the firm through earnings and free cash flow as an intervening variable in banking companies listed in Indonesia Stock Exchange. Data analysis techniques use Partial Least Square (PLS) and from data processing and hypothesis testing, produced 13 accepted hypothesis and 8 hypothesis is rejected. The results of this study were (1) asset structure influence positive and significantly to earnings, (2) capital structure influence negative and significantly to earnings, (3) risk management influence positive and no significantly to earnings, (4) Good Corporate Governance influence positive and significantly to earnings, (5) asset structure influence positive and significantly to free cash flow, (6) capital structure influence positive and no significantly to free cash flow, (7) risk management influence negative and no significantly to free cash flow, (8) Good Corporate Governance influence positive and no significantly to free cash flow, (9) asset structure influence negative and no significantly to financial performance, (10) capital structure influence negative and significantly to financial performance, (11) risk management influence positive and no significantly to financial performance, (12) Good Corporate Governance influence positive and significantly to financial performance, (13) asset structure influence positive and significantly to value of the firm, (14) capital structure influence positive and no significantly to value of the firm, (15) risk management influence negative and significantly to value of the firm, (16 ) Good Corporate Governance influence positive and significantly to value of the firm, (17) earnings influence positive and significantly to financial performance, (18) free cash flow influence positive and significantly to financial performance, (19) earnings influence positive and significantly to value of the firm, (20) free cash flow influence positive and no significantly to value of the firm and (21) financial performance influence positive and significantly to value of the firm.
Highlights
Banking is a strategic tool in the development of economy
This study was designed as a research explanation to explain the subject of Influence Asset Structure, Capital Structure, Risk Management and Good Corporate Governance on Financial Performance and Value of the firm Through Earnings and Free Cash Flow as an intervening variable The Banking Companies Listed in Indonesia Stock Exchange Period 2012-2015
Research data is needed in this study is data from the Indonesia Stock Exchange that contains the company's performance and financial ratios, the annual report containing the annual report of the bank, as well as data from Bank Indonesia
Summary
Banking is a strategic tool in the development of economy. Bank an important financial institutions that affect the economy both in micro and macro. Its function as financial intermediary between the parties that the excess funds with the parties who need funds or deficit. In running his business as a financial institution that sells trust and services, each bank trying as much as possible attract new customers, increase their funds and increase lending and their services. Companies that have good performance will increase the value of the company (Suharli, 2006). Based on the results of the study by Fang et al (2008), the performance of a good company will demonstrate the value of the ijbm.ccsenet.org
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