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DEBBY WULANDARI 023121120 METHODOLOGY RESEARCH THE EFFECT OF BUSINESS VALUATION, FIRM SIZE AND CORPORATE SOCIAL RESPONSIBILITY (CSR) TO VALUE OF THE FIRM.

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Presentation on theme: "DEBBY WULANDARI 023121120 METHODOLOGY RESEARCH THE EFFECT OF BUSINESS VALUATION, FIRM SIZE AND CORPORATE SOCIAL RESPONSIBILITY (CSR) TO VALUE OF THE FIRM."— Presentation transcript:

1 DEBBY WULANDARI 023121120 METHODOLOGY RESEARCH THE EFFECT OF BUSINESS VALUATION, FIRM SIZE AND CORPORATE SOCIAL RESPONSIBILITY (CSR) TO VALUE OF THE FIRM

2 CHAPTER I INTRODUCTION

3 BACKGROUND  Business valuation is a process and a set of procedures used to estimate the economic value of an owner's interest in a business. Anderson, Patrick L in "New Developments in Business Valuation.“Burlington: Elsevier,2005.

4 The value of the firm indicator for the market to assess the overall company. Nurlela and Islahuddin (2008).

5 Fraderick et al ( 1992) define CSR as a principle that explains the company should be responsible for the effects of any action in the community and the environment

6 RESEARCH GAP Henri Servaes, Ane Tamayo (2013) Business valuation, firm size and CSR significantly affecting Value of the firm Maja Pervan, Josipa Višić (2012) Financial Condition, Firm Size and Profitability significantly affecting Value of the firm Lingling Ding (2014) Corporate Finance, and CSR significantly affecting Value of the firm The research Gap: In Maja Pervan and Lingling journal, the variable that will affect significantly to value of the firm is Financial Condition, Profitability, and Corporate Finance

7 RESEARCH PROBLEM Is business valuation affect the Value of the firm? Is CSR affect the Value of the firm? Is firm size affect the Value of the firm?

8 RESEARCH PURPOSE To find empirical evidence that business valuation affecting on the Value of the firm To find empirical evidence that firm size affecting on the Value of the firm

9 CHAPTER 2 THEORY & HYPHOTESIS

10 GRAND THEORY  The company is not the only entity that operates for its own interest, but must provide benefits to stakeholders. STAKEHOLDER THEORY Ghazali dan chariri, (2007)

11 PRIOR RESEARCH Name of Author Independent VariabelThe Results Henri Servaes, Ane Tamayo (2013) Business Valuation Business valuation, firm size and CSR Affecting Value of the firm Firm Size Corporate Social Responsibility (CSR) Maja Pervan, Josipa Višić (2012) Financial Condition Financial Condition, Firm Size and Profitability affecting Value of the firm Firm Size Profitability Lingling Ding (2014) Corporate Finance Corporate Finance, and CSR affecting Value of the firm Corporate Social Responsibility (CSR)

12 RESEARCH FRAMEWORK Business Valuation (X ₁ ) Firm Size (X ₂ ) Value of the firm (Y) Corporate Social Responsibility (X 3 )

13 HYPHOTESIS H1: Business Valuation affect positive to Value of the firm. H3 : CSR affect positive to Value of the firm. H2 : Firm Size affect positive to Value of the firm. H4 : Business Valuation, Firm Size and CSR affect positive to Value of the firm.

14 CHAPTER 3 RESEARCH METHOD

15 DESIGN RESEARCH Research Objective: Causal Comparative Time Horizon: Cross Sectional Data Collection: Quantitative Purpose of Study: Hyphotesis Testing

16 DATA SECONDARY DATA Annual Report from: www.idx.co.id Annual Report from Manufacturer Company in 2012-2014

17 POPULATION Manufacturer Company Listed in Indonesia Stock Exchange

18 SAMPLE Level: Entity Purposive sampling SAMPLE CRITERIA: 42 Manufacture Company that are listed in BEI 2012-2014 Have complete data associated with the variables used in the study. Provides the complete annual report for the year 2012-2014

19 OPERATIONAL DEFINITION BUSINESS VALUATION Income Approach Asset Approach Market Approach Discounted future cash flows John Burr Williams's (1938) Fair market value price-to-earnings ratio (PE) price-to-earning growth ratio (PGE) PE = Market share/ Earning per share.

20 OPERATIONAL DEFINITION Firm Size CSR Value of the Firm Weighted Avergae Number of Employee Davis and Henrekson (1997) Dummy variabel Score 0 : if the company didn’t disclose the item in the list question. Score 1 : if the company disclose the item in the list question Q Ratio James Tobin (1967)

21 TEST OF HYPHOTESIS Uji Normalitas Uji Regresi Linear Sederhana Uji regresi berganda dan Multivariate Y = α + β ₁ X ₁ + β ₂ X ₂ + β X 3 + β ₃ X ₁ X ₂ X 3 + e Y = α + β ₁ X ₁ + e Uji Asumsi Uji Teori

22 THANK YOU


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