A SEM-NEURAL NETWORK APPROACH FOR EXAMINING IMPACT OF FINANCIAL PERFORMANCE ON FIRM VALUE MODERATED BY COAL PRICES: A CASE STUDY OF INDONESIAN COAL MINING FIRMS

• Main Author: Putra, Jeffri
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/80410
• Institution: Institut Teknologi Bandung

This research examines the impact of financial performance to firm value and the moderating effect of coal prices in Indonesian coal mining firms as a case study. A comprehensive research framework and model developed for this research derived from valuation theory. Data were collected from a sample of 14 Indonesian coal mining firms. A multi-analytic approach was proposed whereby the research model was tested using structural equation modeling (SEM), and the results from SEM were used as inputs for a neural network model for predicting firm value. The results showed that all financial performance indicator have a significant relationship, with profitability and activity having positive relationship. The results also showed that coal prices is able to moderate the relationship for all financial performance indicator, except liquidity. The research findings can also assist firm’s managerial decision making in resources allocation to increase firm value. This research reduces the previous research gap by extending previous approaches on firm valuation by integrating neural network with the results from SEM. Firm valuation methodology was improved by integrating both SEM and neural network for examining and predicting firm value, especially coal mining firms