Title: THE EFFECT OF PRODUCT INNOVATION AND QUALITY MANAGEMENT ON COMPANY VALUE THROUGH COMPANY FINANCIAL PERFORMANCE

Authors: NILA EFRIDA YUSI

Affiliations: Master of Accounting Study Program, Faculty of Economics and Business, Universitas Airlangga Surabaya

Publisher: Universitas Airlangga

Abstract

This study was conducted to examine the effect of product innovation on firm value through financial performance as a mediating variable and to examine the effect of quality management on firm value through financial performance as a mediating variable. The population in this study were manufacturing companies listed on the Indonesia Stock Exchange in 2013-2017. The test was conducted using Partial Least Square data analysis techniques, with the help of SmartPLS 3 software. The test results show that product innovation has a positive effect on firm value, product innovation has a positive effect on firm financial performance, financial performance has a positive effect on firm value, product innovation has a positive effect on firm value through financial performance. The direct effect of product innovation on firm value decreased after the inclusion of the mediating variable of financial performance, so it can be said that the mediation that occurred was partial mediation. Quality management was proven to have no effect on firm value, quality management did not affect financial performance. Testing the effect of quality management on firm value through firm financial performance was not continued because quality management did not have a direct effect on firm value and did not have a direct effect on financial performance.

Keywords: product innovation, quality management, financial performance, company value.

Sources: http://repository.unair.ac.id/93203/