The Influence of Revaluation of Fixed Asset on Company's Financial Performance (An Empirical Study of Manufacturing Company Listed in Indonesia Stock Exchange, Year 2012-2014)

Abstract

The revaluation is conducted due to fixed asset based on historical cost, so that it is considered vaguely in value or real potential possessed by the company, as a result of price fluctuation or high value exchange. This research aims to seek how revaluation of fixed asset on the company’s financial performance. The research method used is descriptive, verificative method with quantitative approach. The data source used in this research is secondary data collected through documenting technique. The sample in this research uses purposive sampling. The testing instrument used in this research is a simple regression analysis. Based on the hypothesis testing that has been done, the research result shows that the revaluation of fixed asset contributes 30,3% toward company’s financial performance by using debt to assets ratio, while the rest 77,4% is resulted by other factors beside variable of fixed asset revaluation.