Atestasi : Jurnal Ilmiah Akuntansi
Vol. 7 No. 2 (2024): September

The influence of Risk Profile, Good Coorporate Government, Profitability, and Capital on Company Value in The Banking Sector on The Indonesian Stock Exchange

Andi Runis Makkulau (Unknown)
Muh. Nur (Unknown)
Wahyuni Rahmah (Unknown)
Astriwati (Unknown)



Article Info

Publish Date
06 Sep 2024

Abstract

This study aims to determine and analyze: (1) The effect of risk profile on banking sector firm value; (2) The effect of good corporate governance on the banking sector's corporate value; (3) The effect of profitability on banking sector corporate value; (4) The effect of capital on the value of banking sector companies. The companies studied in this research were from the banking sector and belonged to the BOOK (Business Category Commercial Bank) 4 group, which included seven banks: Bank Central Asia (BBCA), Bank Mandiri (BBRI), Bank Mandiri (BMRI), Bank Negara Indonesia (BBNI), Bank Pan Indonesia (PNBN), Bank CIMB Niaga (BNGA), and Bank Danamon (BDMN). Secondary data from 2011 to 2020, sourced from The Indonesia Capital Market Institute (TICMI) and the official websites of the banks, was utilized for analysis in this study. The data underwent processing and analysis using the SMART PLS application. The study's findings indicate that (1) the presence of Non-Performing Loans (NPL) and a high Loan to Deposit Ratio (LDR) has a significant and negative impact on firm value. (2) While Good Corporate Governance (GCG) has a positive effect on firm value, it is not statistically significant. (3) Profitability has a significant and positive influence on firm value. (4) Conversely, capital exhibits a significant and negative impact on firm value. This research is new research in the literature that uses quantitative models, analyzes empirical data, and provides insights that are useful in the process of making investment decisions in banking sector companies on the Indonesian Stock Exchange.

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Journal Info

Abbrev

ATESTASI

Publisher

Subject

Economics, Econometrics & Finance Social Sciences

Description

Founded in 2018, Atestasi: Jurnal Ilmiah Akuntansi is a double-anonymous peer-reviewed journal published by the Accounting Study Program, Faculty of Economics, Muslim University of Indonesia, Makassar. Published twice a year, in March and September, with E-ISSN 2621-1505. This journal engages in a ...