Liquidity is a serious concern in the company because liquidity plays an

Liquidity is a serious concern in the company because

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fulfill financial obligations when billed. Liquidity is a serious concern in the company because liquidity plays an important role in the success of the company. According to PSAK No. 1 (2017) an obligation is classified as a short-term liability if it is expected to be completed within the normal operating cycle of the company. Companies that have good liquidity will be considered to have good performance by investors. This will be attractive for investors to invest in the company. Literature Review and Hypothesis Development 1. The Agency Theory and The Company Value According to Brigham & Houston (2006: 26- 31) managers are given power over the owner of the company, namely shareholders to make decisions, so this can create a potential conflict of interest known as agency theory. Farooque et al., (2007) revealed that agency problems arise due to the inequality of information so that it requires the completion of an internal working mechanism, a form of ownership can be a solution to agency problems. The phenomenon related to shareholding structure that determines the supervision of manager’s activities as a form of increasing corporate value becomes an interesting phenomenon to be investigated. 2. The Signaling Theory and The Company Value Suwardjono (2005) state that signaling theory is rooted in pragmatic accounting theory that focuses on the influence of information on changes in information user behavior. Signals or signals are actions taken by company management that provide guidance to investors about how management views the company’s future prospects (Brigham and Houston 1999: 36). Hartono (2005) signaling theory states that a good quality company will intentionally give a signal to the market so that the market is expected to be able to distinguish between good and bad quality companies so that it will affect the value of the company. 3. The Stakeholders Theory and The Company Value Ulum et al., (2008) revealed that more expensive stakeholder theory stakeholder positions are considered powerful. This stakeholder group is the main consideration for companies in disclosing or not disclosing information in financial reports. The company will prioritize stakeholders so that they are willing to work together in relation to increasing the value of the company. In this context, stakeholders have the authority to influence management in the process of utilizing all the potential possessed by companies or organizations, because only with good and maximum management and at the same time optimal for all of these potential organizations will be able to create value-added and then encourage financial performance and corporate value which is the orientation of the stakeholders in intervening in management (Wahyu, 2011). 4. The Company Value Company value is defined as market value, because the market value of a company can provide shareholder prosperity to the maximum if the company’s stock price increases. This can be achieved if the shareholders hand over the management of the company to people who are experts in their fields. Fahmi (2014: 190) the value
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