Determinant Firm Value Of The Banking Sector Listing On The Indonesia Stock Exchange: Mediated By Profitability

., Moeljadi and Titisari, Kartika Hendra and Supriyati, Triningsih Sri and Yuniarsa, Sherlinda Octa (2020) Determinant Firm Value Of The Banking Sector Listing On The Indonesia Stock Exchange: Mediated By Profitability. INTERNATIONAL JOURNAL OF SCIENTIFIC & TECHNOLOGY RESEARCH, 9 (4). ISSN 2277-8616

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Abstract

Firm Value (FV) is an important thing that must be achieved by a company. Knowing many factors that have an impact on high FV. This research was also investigates the determinant firm value (stock prices and stock returns) from 30 banking sector companies listed on the Indonesia Stock Exchange in the 2015-2018 period, which are net interest margin (NIM), loan to deposit ratio (LDR), equity on total assets (EOTA), and return on assets (ROA). Path analysis is used to test hypotheses. The results showed that NIM and EOTA had a direct effect on FV (stock prices), but did not affect FV (stock returns). LDR has no effect on FV (stock prices and stock returns). ROA is proven to mediate the influence of NIM on FV (share price). This research implies that banks must pay attention to factors both internal and external to increase investor confidence as reflected in stock prices. However, the increase in share prices that is not balanced with an increase in stock returns needs attention from banks and investors.

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