Effect of asset quality, rentability, and liquidity on the book value of bank companies listed on the idx in 2015-2020

PBV is an important spotlight for investors to find out the book value of a company which can provide an overview of the value of shares per share. The purpose of this study is to measure how strong the impact of asset quality, profitability, and liquidity is on a company's book value. This res...

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Main Authors: Effendi Tjahjadi, Riris Rotua Sitorus
Format: Article
Language:English
Published: Indonesian Institute for Counseling, Education and Therapy (IICET) 2024-11-01
Series:JPPI (Jurnal Penelitian Pendidikan Indonesia)
Subjects:
Online Access:https://jurnal.iicet.org/index.php/jppi/article/view/3260
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author Effendi Tjahjadi
Riris Rotua Sitorus
author_facet Effendi Tjahjadi
Riris Rotua Sitorus
author_sort Effendi Tjahjadi
collection DOAJ
description PBV is an important spotlight for investors to find out the book value of a company which can provide an overview of the value of shares per share. The purpose of this study is to measure how strong the impact of asset quality, profitability, and liquidity is on a company's book value. This research is conducted quantitatively and utilizes secondary data from the bank's annual report. The sample data that met the requirements to be processed were 23 banks for a period of 6 years to become 138 sample data. The results of the data test show that NPL, ROE, ROA, OER, and LDR together have a positive significant impact on the Book Value of Shares, individually NPL has a significant positive impact, ROE has a significant positive impact, ROA has a positive and significant impact, OER has no impact and liquidity has a significant positive impact on the Book Value of Shares. Asset quality, profitability and liquidity scores are indicators of financial performance that can be used by fund owners to determine the condition of a bank's financial health when investing in banking stocks based on the right decisions. Every banking organization should improve its financial performance to achieve Bank Indonesia-regulated bank soundness.
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publishDate 2024-11-01
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spelling doaj-art-c0895036c2864b70b7c974bd87e19dce2025-01-27T12:46:14ZengIndonesian Institute for Counseling, Education and Therapy (IICET)JPPI (Jurnal Penelitian Pendidikan Indonesia)2477-85242502-81032024-11-0110445846610.29210/0202432602377Effect of asset quality, rentability, and liquidity on the book value of bank companies listed on the idx in 2015-2020Effendi Tjahjadi0Riris Rotua Sitorus1Universitas Esa UnggulUniversitas Esa UnggulPBV is an important spotlight for investors to find out the book value of a company which can provide an overview of the value of shares per share. The purpose of this study is to measure how strong the impact of asset quality, profitability, and liquidity is on a company's book value. This research is conducted quantitatively and utilizes secondary data from the bank's annual report. The sample data that met the requirements to be processed were 23 banks for a period of 6 years to become 138 sample data. The results of the data test show that NPL, ROE, ROA, OER, and LDR together have a positive significant impact on the Book Value of Shares, individually NPL has a significant positive impact, ROE has a significant positive impact, ROA has a positive and significant impact, OER has no impact and liquidity has a significant positive impact on the Book Value of Shares. Asset quality, profitability and liquidity scores are indicators of financial performance that can be used by fund owners to determine the condition of a bank's financial health when investing in banking stocks based on the right decisions. Every banking organization should improve its financial performance to achieve Bank Indonesia-regulated bank soundness.https://jurnal.iicet.org/index.php/jppi/article/view/3260non-performing loan, return on equity, return on assets, operating expenses to operating income loan to deposit ratio, and price book value
spellingShingle Effendi Tjahjadi
Riris Rotua Sitorus
Effect of asset quality, rentability, and liquidity on the book value of bank companies listed on the idx in 2015-2020
JPPI (Jurnal Penelitian Pendidikan Indonesia)
non-performing loan, return on equity, return on assets, operating expenses to operating income loan to deposit ratio, and price book value
title Effect of asset quality, rentability, and liquidity on the book value of bank companies listed on the idx in 2015-2020
title_full Effect of asset quality, rentability, and liquidity on the book value of bank companies listed on the idx in 2015-2020
title_fullStr Effect of asset quality, rentability, and liquidity on the book value of bank companies listed on the idx in 2015-2020
title_full_unstemmed Effect of asset quality, rentability, and liquidity on the book value of bank companies listed on the idx in 2015-2020
title_short Effect of asset quality, rentability, and liquidity on the book value of bank companies listed on the idx in 2015-2020
title_sort effect of asset quality rentability and liquidity on the book value of bank companies listed on the idx in 2015 2020
topic non-performing loan, return on equity, return on assets, operating expenses to operating income loan to deposit ratio, and price book value
url https://jurnal.iicet.org/index.php/jppi/article/view/3260
work_keys_str_mv AT effenditjahjadi effectofassetqualityrentabilityandliquidityonthebookvalueofbankcompanieslistedontheidxin20152020
AT ririsrotuasitorus effectofassetqualityrentabilityandliquidityonthebookvalueofbankcompanieslistedontheidxin20152020