Jeanyfer, Jeanyfer
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Moderating Role of Liquidity Ratio: A Look at Firm Performance in Indonesia Jeanyfer, Jeanyfer; Nugroho, Vina
Enrichment : Journal of Management Vol. 14 No. 5 (2024): December: Management Science And Field
Publisher : Institute of Computer Science (IOCS)

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.35335/enrichment.v14i5.2131

Abstract

This research investigates the impact of corporate income tax, asset turnover, and liquidity on firm performance, as measured by Tobin's Q, in Indonesian non-financial listed companies between 2013 and 2023. Employing panel data analysis, we find that higher corporate income tax rates negatively affect firm performance. While asset turnover and liquidity ratio exhibit less significant impacts, our analysis reveals that liquidity plays a moderating role in the relationship between asset turnover and firm performance. These findings emphasize the significance of effective liquidity management and efficient asset utilization for improving corporate performance and stimulating economic growth in Indonesia.