THE EFFECT OF FREE CASH FLOW AND ASSETS MANAGEMENT ON FIRM VALUE WITH FINANCIAL PERFORMANCE AS INTERVENING VARIABLE

Abstract

Abstract: The Effect of Free Cash Flow and Assets Management on Firm Value with Financial Performance as Intervening Variable. This research aimed to determine the direct and indirect effect of free cash flow and assets management on firm value through financial performance as intervening variable, on consumer goods manufacturer companies sector during 2014-2018. This research was a quantitative research with a causal research design. The research sample taken through purposive sampling were 20 companies with data collected were 100 data. The data were analyzed with multiple regression and path analysis. The result indicated that free cash flow and assets management do not have appositive direct effect on firm value. However free cash flow and assets management have a positive indirect effect on firm value through financial performance.

Keywords: Free cash Flow, Assets management, Financial performance, and Firm value