How Capital Investment and Integrated Reporting Shape Firm Value in Consumer Cyclicals
Abstract
Firm value reflects performance and competitiveness, which are the main concerns for investors, especially in the consumer cyclicals sector which is sensitive to economic cycles. Inconsistencies in previous research regarding the effect of working capital management and capital intensity on firm value requires further study. This study uses panel data from 83 companies selected by purposive sampling during the 2021-2023 period. The analysis employs a moderation regression method using EViews software. The results show that capital intensity has a significant positive effect on firm value, while working capital management has no significant effect. Integrated reporting strengthens the relationship between capital intensity and firm value, but doesn’t moderate the relationship between working capital management and firm value. These findings highlight the importance of investment in fixed assets and reporting transparency to increase firm value. This study provides insights for managers on leveraging integrated reporting in creating sustainable firm value.
Keywords: Working Capital Management; Capital Intensity; Firm Value; Integrated Reporting; Consumer cyclicals
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References
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Zúñiga, F., Pincheira, R., Walker, J., & Turner, M. (2020). The Effect Of Integrated Reporting Quality On Market Liquidity And Analyst Forecast Error. Accounting Research Journal, 33(4–5), 635–650. Https://Doi.Org/10.1108/ARJ-07-2019-0145
Ayem, S., Kusuma, H., & Arifin, J. (2024). INTEGRATED REPORTING , ESG DISCLOSURE , FORECAST ACCURACY , AND FIRM VALUE : PROFITABILITY AS MODERATING VARIABLE. 5, 1–20. Https://Doi.Org/Https://Doi.Org/10.47172/2965-730X.Sdgsreview.V5.N02.Pe02608
Beaver, W., Kettler, P., & Schoes, M. (1970). The Assocition Between Market Determined And Accounting Determined Risk Measures. The Accounting Review, 43(3), 654–682.
Boisjoly, R. P., Conine, T. E., & Mcdonald, M. B. (2020). Working Capital Management: Financial And Valuation Impacts. Journal Of Business Research, 108(November 2018), 1–8. Https://Doi.Org/10.1016/J.Jbusres.2019.09.025
Chung, K. H., & Pruitt, S. W. (1994). A Simple Approximation Of Tobin ’S Q. Financial Management, 23(3), 70–74. Http://Www.Jstor.Org/Stable/3665623 Accessed:
Darminto, D. P., Lysandra, S., Mulyadi, H. D., & Ahmar, N. (2024). Impact Of Integrated Reporting On Firm Value And Earnings Quality As A Moderator In Southeast Asia. Investment Management And Financial Innovations, 21(2), 191–204. Https://Doi.Org/10.21511/Imfi.21(2).2024.15
Firdaus, Saputra, D., & Allif Ananda, Y. (2024). The Effect Of Green Accounting, Carbon Emission, Eco-Efficiency, And Gender Diversity On Firm Value. International Conference On Law And Social Science, 1–17. Https://Pps.Uir.Ac.Id/Icls2024/
Grassmann, M. (2021). The Relationship Between Corporate Social Responsibility Expenditures And Firm Value: The Moderating Role Of Integrated Reporting. Journal Of Cleaner Production, 285, 124840. Https://Doi.Org/10.1016/J.Jclepro.2020.124840
Gujarati, D. N., & Porter, D. C. (2009). Basic Econometrics (A. E. Hilbert & N. Fox (Eds.); Fifth Edit). Douglas Reiner.
Gupta, R., Sunita, J., & Gagan, P. (2023). Does Management Of Working Capital Enhance Firm Value ? Empirical Analysis Of Manufacturing Enterprises In India. Investment Management And Financil Innovation, 20(3), 224–238. Https://Doi.Org/Http://Dx.Doi.Org/10.21511/Imfi.20(3).2023.19
Hall, M., & Weiss, L. (1967). Firm Size And Profitability. The Review Of Economics And Statistics, 49(3), 319–331. Http://Www.Jstor.Org/Stable/1926642
Harahap, I. M., Septiani, I., & Endri, E. (2020). Effect Of Financial Performance On Firm’s Value Of Cable Companies In Indonesia. Accounting, 6(6), 1103–1110. Https://Doi.Org/10.5267/J.Ac.2020.7.008
Harun, M. S., Hussainey, K., Mohd Kharuddin, K. A., & Farooque, O. Al. (2020). CSR Disclosure, Corporate Governance And Firm Value: A Study On GCC Islamic Banks. International Journal Of Accounting And Information Management, 28(4), 607–638. Https://Doi.Org/10.1108/IJAIM-08-2019-0103
Heriyanto, M. (2023). BEI : 44 Perusahaan Antri IPO Didominasi Sektor “Consumer Cyclicals.” Antaranews.Com. Https://Www.Antaranews.Com/Berita/3471186/Bei-44-Perusahaan-Antri-Ipo-Didominasi-Sektor-Consumer-Cyclicals
IFRS Foundation. (2013). THE INTERNATIONAL
Jensen, M. C., & Meckling, W. H. (1976). Theory Of The Firm: Managerial Behavior, Agency Costs And Ownership Structure. Journal Of Financial Economics 3, 3, 305–360. Https://Doi.Org/10.1057/9781137341280.0038
Lartey, T., Danso, A., & Owusu-Agyei, S. (2020). CEO’s Market Sentiment And Corporate Innovation: The Role Of Financial Uncertainty, Competition And Capital Intensity. International Review Of Financial Analysis, 72, 1–25. Https://Doi.Org/10.1016/J.Irfa.2020.101581
Lestari, V. A., Maryanti, E., & Biduri, S. (2024). The Gender Diversity Executive, Thin Capitalization, Capital Intensity On Tax Avoidance And Firm Value. 16(1), 88–104. Https://Doi.Org/10.26740/Jaj
Melegy, M. A. H., & Alain, A. M. M. (2020). Measuring The Effect Of Disclosure Quality Of Integrated Business Reporting On The Predictive Power Of Accounting Information And Firm Value. Management Science Letters, 10(6), 1377–1388. Https://Doi.Org/10.5267/J.Msl.2019.11.019
Modigliani, F., & Miller, M. H. (1963). Income Taxes And The Cost Of Capital. American Economic Association, 53(3), 433–443. Https://Www.Jstor.Org/Stable/1809167
Moussa, A. A. (2018). The Impact Of Working Capital Management On Firms’ Performance And Value: Evidence From Egypt. Journal Of Asset Management, 19(4), 259–273. Https://Doi.Org/10.1057/S41260-018-0081-Z
Myers, S. C. (1984). The Capital Structure Puzzle. The Journal Of Finance, 39(3), 574–592. Https://Doi.Org/10.1111/J.1540-6261.1984.Tb03646.X
Napitupulu, R. B., Simanjuntak, T. P., Hutabarat, L., Damanik, H., Harianja, H., Sirait, R. T. M., & Ria, C. E. (2021). Penelitian Bisnis, Teknik Dan Analisis Data Dengan SPSS-STATA-EVIEWS. Madenatera.
Rahman, F. A., Ramadhan, S. D., & Saputra, D. (2024). The Effect Ef Female Directors, Board Size, Independent Commissioners And Quality Of Earnings Ratio On The Integrated Reporting Quality With Political Connection As A Moderating Variable. Asia Proceedings Of Social Sciences (APSS), 12. Https://Doi.Org/Https://Doi.Org/10.31580/631bre80
Ramadhan, S. D., Saputra, D., & Nawas, A. (2024). The Effect Of Female Directors, Board Size, Independent Commissioners, And Political Connections On Tax Avoidance With Integrated Reporting Quality As A Mediating Variable Case Study Of Non-Cyclical Consumer Goods Sector Companies Listed On IDX 2019-2022. Asia Proceedings Of Social Sciences (APSS), 12. Https://Doi.Org/Https://Doi.Org/10.31580/Bej75y53
Richards, V. D., & Laughlin, E. J. (1980). A Cash Conversion Cycle Approach Liquidity Analysis. Financial Management, 9(1), 32–38.
Saputra, D., & Arifin, Z. D. (2023). Financial Constrains VS Green Practices : Impact On Firm Value Energy In Indonesia. AGREGAT: Jurnal Ekonomi Dan Bisnis, 7(2), 153–173. Https://Doi.Org/10.22236/Agregat
Saputra, D., & Arifin, Z. D. (2024). The Effect Of Green Accounting, Assets Turnover, Eco-Efficiency, And Financial Constraints On Firm Value. International Conference On Law And Social Science.
Senan, N., Al-Faryan, M. A. S., Anagreh, S. A., & Al-Homaidi, E. A. (2022). Impact Of Working Capital Management On Firm Value : An Empirical Examination Of Firms Listed On The Bombay Stock Exchange In India Impact Of Working Capital Management On Firm Value : An Empirical Examination Of Firms Listed On The Bombay Stock Exchange. February 2024. Https://Doi.Org/10.1504/IJMFA.2022.122227
Titman, S., & Wessels, R. (1988). The Determinants Of Capital Structure Choice. The Journal Of Finance, 43(1), 1–19. Https://Doi.Org/10.1111/J.1540-6261.1988.Tb02585.X
Tobin, J. (1969). A General Equilibrium Approach To Monetary Theory. Journal Of Money, Credit And Banking, 1(1), 15–29.
Velte, P. (2021). Archival Research On Integrated Reporting: A Systematic Review Of Main Drivers And The Impact Of Integrated Reporting On Firm Value. Journal Of Management And Governance, 26(3), 997–1061. Https://Doi.Org/10.1007/S10997-021-09582-W
Vijayakumaran, R. (2019). Efficiency Of Working Capital Management And Firm Value: Evidence From Chinese Listed Firms. International Journal Of Financial Research, 10(6), 133–144. Https://Doi.Org/10.5430/Ijfr.V10n6p133
Vitolla, F., Raimo, N., & Rubino, M. (2019). Appreciations, Criticisms, Determinants, And Effects Of Integrated Reporting: A Systematic Literature Review. Corporate Social Responsibility And Environmental Management, 26(2), 518–528. Https://Doi.Org/10.1002/Csr.1734
Woolley, M. (1992). Using Statistics For Desk Research. Aslib Proceedings, 44(5), 227–233. Https://Doi.Org/Https://Doi.Org/10.1108/Eb051276
Worokinasih, S., & Zaini, M. L. Z. B. M. (2020). The Mediating Role Of Corporate Social Responsibility (CSR) Disclosure On Good Corporate Governance (GCG) And Firm Value. Australasian Accounting, Business And Finance Journal, 14(1 Special Issue), 88–96. Https://Doi.Org/10.14453/Aabfj.V14i1.9
Zúñiga, F., Pincheira, R., Walker, J., & Turner, M. (2020). The Effect Of Integrated Reporting Quality On Market Liquidity And Analyst Forecast Error. Accounting Research Journal, 33(4–5), 635–650. Https://Doi.Org/10.1108/ARJ-07-2019-0145
Published
2025-01-30
How to Cite
ANGELITA, Rosalina; SAPUTRA, Dian.
How Capital Investment and Integrated Reporting Shape Firm Value in Consumer Cyclicals.
E-Jurnal Akuntansi, [S.l.], v. 35, n. 1, jan. 2025.
ISSN 2302-8556.
Available at: <https://ojs.unud.ac.id/index.php/akuntansi/article/view/120791>. Date accessed: 04 feb. 2025.
doi: https://doi.org/10.24843/EJA.2025.v35.i01.p12.
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