International Journal of Public Budgeting, Accounting and Finance
Vol 2 No 4 (2019): Journal of Public Budgeting, Accounting and Finance

FACTORS AFFECTING GROWTH OF PROFIT AND ITS IMPACT ON THE VALUE OF BANKING FIRMS IN INDONESIA STOCK EXCHANGE 2013-2017

Hutasuhut, Ahmad Effendy (Unknown)



Article Info

Publish Date
01 Jan 2020

Abstract

This study aims to analyse the factors that affect earnings growth and its impact on the firm value in banking companies listed on the Indonesia Stock Exchange in 2013-2017, namely Capital Adequacy Ratio (CAR), Non-Performing Loans (NPL), Loan to Deposit Ratio (LDR), Operating Expenses on Operating Income (BOPO) and Dept to Equity Ratio (DER) and Profit Growth as intervening variables. This type of research is causal research. The population of this study is all banking companies listed on the Indonesia Stock Exchange in 2013-2017 as many as 43 companies. Sampling was done by nonprobability sampling with a total sample of 35 companies using the technique of purposive sampling. The method of data collection is carried out by downloading through the Indonesia Stock Exchange website www.idx.co.id and the website of the company concerned in the form of financial statements of banking companies in 2013-2017. The data of this study were analysed using the classical assumption test, hypothesis testing and path analysis using SPSS 24 Statistical Package for Social Science (SPSS). The results of this study indicate that simultaneous CAR, NPL, LDR, BOPO, DER and Profit Growth significantly affect Firm Value. Partially BOPO and DER have a negative and significant effect on Firm Value, while CAR and Profit Growth have a positive and not significant effect on Firm Value and NPL has a negative and no significant effect on Firm Value. Profit growth is able to mediate the relationship between NPL, BOPO and DER on the Value of Banking Companies listed on the Indonesia Stock Exchange in 2013-2017.

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Journal Info

Abbrev

ijpbaf

Publisher

Subject

Economics, Econometrics & Finance

Description

The International Journal of Public Budgeting, Accounting and Finance (IJPBAF) publishes original research in all areas that utilizes tools from basic disciplines such as economics, statistics, psychology, social and sociology. This research typically uses analytical, empirical archival, ...