DEBBY WULANDARI 023121120 METHODOLOGY RESEARCH THE EFFECT OF BUSINESS VALUATION, FIRM SIZE AND...

DEBBY WULANDARI023121120

METHODOLOGY RESEARCH

THE EFFECT OF BUSINESS VALUATION, FIRM SIZE AND

CORPORATE SOCIAL RESPONSIBILITY (CSR) TO VALUE

OF THE FIRM

CHAPTER IINTRODUCTIO

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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.

The value of the firm indicator for the market to

assess the overall company.

Nurlela and Islahuddin (2008).

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

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

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?

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

CHAPTER 2THEORY &

HYPHOTESIS

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)

PRIOR RESEARCH

 Name of Author  Independent Variabel The Results

Henri Servaes, Ane Tamayo (2013)

 Business ValuationBusiness 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 firmCorporate Social Responsibility (CSR)

RESEARCH FRAMEWORK

Business Valuation

(X₁)

Firm Size(X₂)

Value of the firm(Y)

Corporate Social

Responsibility

(X3)

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.

CHAPTER 3

RESEARCH

METHOD

DESIGN RESEARCH

Research Objective:

Causal Comparative

Time Horizon:

Cross Sectional

Data Collection:

Quantitative

Purpose of Study:

Hyphotesis Testing

DATA

SECONDARY DATA Annual Report from:

www.idx.co.id

Annual Report from Manufacturer

Company in 2012-2014

POPULATION

Manufacturer CompanyListed in Indonesia Stock Exchange

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

OPERATIONAL DEFINITION

BUSINESS VALUATIO

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Income Approach

AssetApproach

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.

OPERATIONAL DEFINITION

Firm Size

CSR

Value of the Firm

Weighted Avergae Number of EmployeeDavis 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 RatioJames Tobin (1967)

TEST OF HYPHOTESIS

Uji Normalitas

Uji Regresi Linear

Sederhana

Uji regresi berganda

dan Multivariate

Y = α + β₁X₁ + β₂X₂+ βX3 + β₃X₁X₂X3 + e

Y = α + β₁X₁ + e

Uji Asumsi

Uji Teori

THANK

YOU