The Importance of Eva in Determining the Firm Value through the Systematic Risk and Fundamental Factor

Abstract

This study aims to determine the effect of liquidity, activity, leverage, asset size, systematic risk to value of manufacturing firms listed in the Indonesia Stock Exchange. This study used an explanatory design using secondary data from JCI, Stock Return, stock price and financial statement data obtained from Manufactures Firm listed on the Indonesia Stock Exchange. Samples were taken by purposive sampling as many as 38 companies for 6 years of observation, using path analysis. This basic model was used to analyze the path to estimate the relationships directly or indirectly between exogenous and endogenous variables. The results showed that the first, liquidity, leverage, and asset size did not significantly influence the systematic risk, while the activity significantly and negatively related to the systematic risk. Secondly, liquidity and activity had no effect on Firm value, while negative and significant effect Leverage, Asset Size has significant and positive impact on Firm value. Third, systematic risk did not affect the value of the Firms.