Firm Size And Financial Performance On Value Of Banking Companies

This research aims to analyze the influence of financial performance on company value in banking sub-sector companies listed on the Indonesia Stock Exchange (IDX) for the 2018-2021 period. The data used is secondary data in quantitative form in the form of annual financial reports. The sampling meth...

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Main Authors: Yantri Ulul Azmi, Lilis Setyowati
Format: Article
Language:English
Published: LPPM Institut Syariah Negeri Junjungan (ISNJ) Bengkalis 2023-10-01
Series:Jurnal Perbankan Syariah
Subjects:
Online Access:https://ejournal.stiesyariahbengkalis.ac.id/index.php/jps/article/view/1058
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author Yantri Ulul Azmi
Lilis Setyowati
author_facet Yantri Ulul Azmi
Lilis Setyowati
author_sort Yantri Ulul Azmi
collection DOAJ
description This research aims to analyze the influence of financial performance on company value in banking sub-sector companies listed on the Indonesia Stock Exchange (IDX) for the 2018-2021 period. The data used is secondary data in quantitative form in the form of annual financial reports. The sampling method used purposive sampling, which resulted in a sample of 43 companies. The analytical method used is multiple linear regression analysis. Company size is proxied by SIZE, liquidity is proxied by a loan-to-asset ratio (LAR), profitability is proxied by operating costs and operating income (OCOI), and leverage is proxied by capital adequacy ratio (CAR) as an independent variable, company value is measured using price-to-book value (PBV) as the dependent variable. The results of this research show that company size does not have a significant effect on company value. In contrast, loan-to-asset ratio (LAR), operational costs and operating income (OCOI), and capital adequacy ratio (CAR) positively and significantly affect company value. This research provides practical implications that company value can be used as a measure of the success of company management in future operational prospects to create trust for company shareholders.
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publisher LPPM Institut Syariah Negeri Junjungan (ISNJ) Bengkalis
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spelling doaj-art-d1ef559fe8b5477bb7df33c173b90cc52025-08-20T02:04:06ZengLPPM Institut Syariah Negeri Junjungan (ISNJ) BengkalisJurnal Perbankan Syariah2721-62412721-70942023-10-014211613110.46367/jps.v4i2.10581058Firm Size And Financial Performance On Value Of Banking CompaniesYantri Ulul Azmi0Lilis Setyowati1Universitas Dian Nuswantoro, Semarang, IndonesiaUniversitas Dian Nuswantoro, Semarang, IndonesiaThis research aims to analyze the influence of financial performance on company value in banking sub-sector companies listed on the Indonesia Stock Exchange (IDX) for the 2018-2021 period. The data used is secondary data in quantitative form in the form of annual financial reports. The sampling method used purposive sampling, which resulted in a sample of 43 companies. The analytical method used is multiple linear regression analysis. Company size is proxied by SIZE, liquidity is proxied by a loan-to-asset ratio (LAR), profitability is proxied by operating costs and operating income (OCOI), and leverage is proxied by capital adequacy ratio (CAR) as an independent variable, company value is measured using price-to-book value (PBV) as the dependent variable. The results of this research show that company size does not have a significant effect on company value. In contrast, loan-to-asset ratio (LAR), operational costs and operating income (OCOI), and capital adequacy ratio (CAR) positively and significantly affect company value. This research provides practical implications that company value can be used as a measure of the success of company management in future operational prospects to create trust for company shareholders.https://ejournal.stiesyariahbengkalis.ac.id/index.php/jps/article/view/1058firm valuecompany sizeliquidityprofitabilityleverage
spellingShingle Yantri Ulul Azmi
Lilis Setyowati
Firm Size And Financial Performance On Value Of Banking Companies
Jurnal Perbankan Syariah
firm value
company size
liquidity
profitability
leverage
title Firm Size And Financial Performance On Value Of Banking Companies
title_full Firm Size And Financial Performance On Value Of Banking Companies
title_fullStr Firm Size And Financial Performance On Value Of Banking Companies
title_full_unstemmed Firm Size And Financial Performance On Value Of Banking Companies
title_short Firm Size And Financial Performance On Value Of Banking Companies
title_sort firm size and financial performance on value of banking companies
topic firm value
company size
liquidity
profitability
leverage
url https://ejournal.stiesyariahbengkalis.ac.id/index.php/jps/article/view/1058
work_keys_str_mv AT yantriululazmi firmsizeandfinancialperformanceonvalueofbankingcompanies
AT lilissetyowati firmsizeandfinancialperformanceonvalueofbankingcompanies