Variables affecting the book value of manufacturing companies : the case of Indonesia

Abstract

The research objective is to examine variables that can be used as crucial determinannts for the book value of manufacturing companies in Indonesia. The distinguishing variables are investment decisions, size of company, risk management issues, profitability and cash flow. The research design uses quantitative descriptive methodology with a sample of 25 manufacturing companies listed in the Indonesian Stock Exchange, for 4 consecutive years so that the number of units of analysis becomes 100 for the time series cross-sectional method used (pulling data). The analysis technique uses discriminant statistics that are processed with SPSS. The cash flow variable has a value of Wilks 'Lambda of 0.446 and a significance level of 0.000 which means that the cash flow variable tends to have different effect in different groups of companies.