Internal factors and firm value: A case study of banking listed companies

Abstract

The weakening of the value of the rupiah against the US dollar has made Indonesia again experiencing economic crisis conditions. However, this condition did not make the performance of the banking sector share decline and vice versa, defeating nine other industrial sectors, this indicates that the firm value in the banking sector is still considered good by investors, which are the factors that influence the firm value? This study aims to analyze the factors that influence firm value in the banking sector and can be used by investors in making investment decisions. This research uses secondary data with 12 sample companies in the banking sector listed on the Indonesia Stock Exchange in the 2011-2016 period using the purposive sampling method and panel data regression analysis. The results of this study indicate that the variable interest income, a debt-equity ratio (DER) and firm age (AGE) influence the firm value (FV), while the managerial ownership variables and earnings per share (EPS) do not affect the firm value (FV). The results of these studies are expected to help companies and investors in decision making. Abstrak Melemahnya nilai Rupiah terhadap US Dollar membuat Indonesia kembali mengalami kondisi krisis ekonomi. Namun kondisi tersebut justru tidak membuat kinerja saham sektor perbankan menurun bahkan sebaliknya, mengalahkan sembilan sektor industri lainnya hal ini menunjukkan bahwa nilai perusahaan pada sektor perbankan masih dinilai baik oleh investor yang menjadi pertanyaan, apa saja faktor-faktor yang mempengaruhi nilai perusahaan? Penelitian ini bertujuan untuk menganalisis faktor-faktor yang mempengaruhi nilai perusahaan pada sektor perbankan dan dapat digunakan oleh investor dalam mengambil keputusan investasi. Riset ini memakai data sekunder dengan 12 sampel perusahaan pada sektor perbankan yang terdaftar di Bursa Efek Indonesia periode 2011-2016 dengan menggunakan metode purposive sampling dan analisis regresi data panel. Hasil penelitian ini menunjukkan bahwa variabel pendapatan bunga, debt-equity ratio (DER) dan umur perusahaan memberikan pengaruh terhadap nilai perusahaan, sedangkan variabel kepemilikan manajerial dan earning per share (EPS) tidak berpengaruh terhadap nilai perusahaan. Hasil penelitian tersebut diharapkan dapat membantu perusahaan dan investor dalam pengambilan keputusan.

The Influence of the Fundamental Factors on Plantation Companies’ Firm Value on the Indonesia Stock Exchange

“…The debt to equity ratio (DER) is the debt ratios that is predicted to affect FV. The higher the DER, the Subing & Susiani (2019) which found that DER has a negative effect on FV meaning that an increase in debt will be followed by a decrease in the FV.…”

“…The company's ability to obtain shareholders benefits is important in measuring FV, it can be seen through EPS. Companies must be able to influence share prices in the capital market in order to increase FV by increasing the value of traded stock (Subing & Susiani, 2019). Kholis, Sumarmawati, & Mutmainah (2018); Kusuma & Priantinah (2012) explained that EPS has an effect on FV, the higher the EPS, the higher the FV.…”

Pengaruh Likuiditas, Saldo Laba Dan Arus Kas Laba Terhadap Nilai Perusahaan Manufaktur

“…Namun hasil berbeda ditemukan oleh Ida (2010) menunjukkan bahwa 5 dari 7 perusahaan memilih pendanaan hutang daripada ekuitas modal internal. Perbedaan hasil juga ditemukan oleh Subing et al (2019) bahwa faktor internal tidak berpengaruh pada nilai perusahaan sektor bank. Adanya perbedaan pendapat hasil penelitian dahulu dapat memperkuat penelitian ini menguji empiris teori pecking order yang memilih sumber dana internal lebih disukai manajemen perusahaan untuk peningkatan nilai perusahaan.…”

The Effect of Capital Structure, Dividend Policy, and Foreign Ownership on Firm Value

“…The company's capital structure can come from within the company, in the form of capital owner ownership and retained earnings, or outside the company, in the form of loans or debt. Determining the optimal capital structure target proportion between foreign capital, debt, and own capital is the main task of company management (Subing & Susiani, 2019). Foreign investors are increasingly investing their money in Indonesian companies due to the increasing opportunities for Indonesia's economic growth rate and support from free trade.…”