The Effect of Liquidity, Asset Structure, Capital Structure on Firm Value with Profitability and GCG as Intervening Variables on Non-Cyclical Consumer Listed on the Indonesia Stock Exchange

Abstract

This study aims to determine the effect of liquidity, asset structure, and capital structure on firm value with profitability and good corporate governance (GCG) as intervening variables in non-cyclical consumer companies listed on the Indonesia Stock Exchange (IDX). The data collection technique used in this study is annual report documentation for 6 years starting from 2015- 2021 from Personal Care Product companies listed on the IDX, with a total sample of 5 companies selected through purposive sampling. The collected data were analyzed using Partial Least Squares (PLS) analysis, and the findings were interpreted using a path analysis approach. In conclusion, liquidity and asset structure have a negative relationship with profitability and firm value but have a positive relationship with GCG. On the other hand, capital structure has a negative relationship with profitability and GCG but has a positive relationship with firm value. Profitability has a positive relationship with firm value, while GCG has a negative relationship. Profitability and GCG have a negative relationship as intervening variables in the effect of liquidity and asset structure on firm value but have a positive relationship as intervening variables in the effect of capital structure on firm value.