Abstract:

The purpose of this study was to determine the moderating effects of environment complexity (EC) and asset risk taking (ART) on the relationship between diversification and firm value. Samples from 10 insurance companies are diversified and listed on the Indonesia Stock Exchange from 2013 to 2017. The data used are panel data and analyzed by multiple regression with SPSS analysis tools. The results of the analysis show that diversification has a direct effect on firm value. From the analysis of the moderating effect shows that EC and ART factors can influence the relationship between diversification and firm value. These results are important to be observed for the leaders of insurance companies in diversifying the need to pay attention to EC and ART factors in an effort to increase firm value.