Dominant Factors of Banking Profitability That Implicate Firm Value

Luqman Hakim, Luqman (2023) Dominant Factors of Banking Profitability That Implicate Firm Value. International Journal of Membrane Science and Technology, 10 (2). pp. 3294-3312. ISSN 2410-1869

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Abstract

This study is intended to examine the dominant factors that influence the profitability and stock returns of the banking sector when high interest rates occur. The object of this research is the banking sector companies on the Indonesia Stock Excha nge with a population of 33 companies in the 2011 2016 period. Using certain criteria so that a sample of 10 companies is obtained. This study uses the variables BOPO, CAR, NPL, LDR, SBI, ROA, and Tobin's Q firm value. All the research variables are divide d into two research models, namely the first model uses the endogenous variable ROA which functions as an intervening variable and the second model uses the endogenous variable Tobin's Q firm value. In the results of the first research model, the BOPO and NPL variables have a significant effect on ROA, while the CAR, LDR, SBI variables have no significant effect on ROA. All exogenous variables together using the F test have a significant effect on the endogenous variable, ROA, at the Adjusted R Squared leve l of 0.421089. In the second research model results that the variables BOPO, CAR, NPL, and LDR have no significant effect on Tobin's Q firm value. By using the F test, all exogenous variables together have a significant effect on the endogenous variable, T obin's Q firm value, at the level of Adjusted R Squared 0.194291. Among the exogenous variables in this study, the dominant factor is the NPL variable in the first research model Keywords: Operating Expenses to Operating Income (BOPO), Capital Adequacy Ratio(CAR), Non Performing Loans (NPLs), Loan to Deposit Ratio(LDR), Central Bank Reference Rate (SBI), Return On Assets(ROA) and Tobin's Q firm value.

Item Type:	Article
Subjects:	H Social Sciences > HG Finance
Depositing User:	Luqman Hakim
Date Deposited:	20 Feb 2024 02:49
Last Modified:	20 Feb 2024 02:49
URI:	http://repository.upi-yai.ac.id/id/eprint/10373

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