Determinants of Firm Value in the Banking Sector: Random Effects Model

Sugianto, Sugianto and Oemar, Fahmi and Hakim, Luqman and Endri, Endri (2020) Determinants of Firm Value in the Banking Sector: Random Effects Model. International Journal of Innovation, Creativity and Change, 12 (8). pp. 208-218.

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Abstract

Maximum company value is the banking goal desired by shareholders. This study aims to identify the determinants of profitability and its implications for the value of banking companies in Indonesia. The study population was 42 banks listed on the Indonesia Stock Exchange during the period 2010-2015, while 27 banks were taken as research samples. The sampling technique was done by purposive sampling, and analysed by the random effects regression panel model. Empirical findings prove that NPL ratio factors affect firm value, while other factors namely; Company growth (FG), CAR, Loans (LDR), BOPO, DPK Growth (DG) and profitability partially do not affect the value of the company (Tobin's Q), but affect the value of the company (Tobin's Q) together.

Item Type: Article
Uncontrolled Keywords: Banking, firm value, profitability, random effect model.
Subjects: H Social Sciences > HB Economic Theory
H Social Sciences > HC Economic History and Conditions
Divisions: Pascasarjana > Magister Ilmu Manajemen
Depositing User: Fahmi Oemar
Date Deposited: 09 Jan 2023 07:25
Last Modified: 09 Jan 2023 07:25
URI: http://repository.unilak.ac.id/id/eprint/2714

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