Influence of Profitability to the Firm Value of Diversified Companies in the Philippines
By William T. Sucuahi, Jay Mark Cambarihan. 2016
217 citations recorded by the source corpus.
The main objective of every company is to maximize the assets or firm value. Maximizing firm value is essential for a company because it means increasing the wealth of shareholders as well. This study aims to determine if there is significant influence between the company’s profile such as industry, company age and its profitability with the firm value using Tobin’s Q model. The proponents selected 86 diversified companies in the Philippines by gathering and analyzing annual financial reports on 2014 in the Philippine Stock Exchange (PSE) to obtain the objective of the study and also employed predictive correlational design. Frequency, Mean and Multiple Regression were used to determine the significant influence between the independent and dependent variables. The multiple regression reveals that of the three factors assumed to influence value of the firm using the Tobin’s Q, only profitability shows significant positive impact on the firm’s value.
Subfields: Accounting, Strategy and Management
View Paper: https://www.semanticscholar.org/paper/a3aac182c0155a45dabc4369a51e0188efb4e941
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Citations in the corpus
- The Impact of Earnings Quality on Firm Value: The Case of Vietnam (2020, background): “…of studies conducted such as Varaiya, Kerin, and Weeks (1987), Liow (2010), Hermuningsih (2014), Kodongo, MokoaleliMokoteli, and Maina (2015), Mule (2015), Sucuahi and Cambarihan (2016), Handoko (2017), and Nam (2019), who studied the impact of information on financial statements on firm value.”
- Capital Structure and Firm Size on Firm Value Moderated by Profitability (2019, methodology): “Such research was conducted by Sucuahi & Cambarihan (2016), Hamidah and Umdiana (2017), Suffah & Riduwan (2016), Sucuahi & Cambarihan (2016), and Tiska (2015) who said that profitability affect the value of the company.”