Financial Performance and Company Values: A Study in the Banking Sector

Authors

  • Laura Michelia Proud Master of Management Department, Universitas Gunadarma, Depok, Indonesia
  • Euphrasia Susy Suhendra Master of Management Department, Universitas Gunadarma, Depok, Indonesia

DOI:

https://doi.org/10.60084/ijma.v1i2.96

Keywords:

Capital structure, Firm growth, Firm value, Liquidity, Profitability

Abstract

A company aims to boost its overall value by maximizing stock prices. The significance of banking in an economy, especially for fund intermediation and credit, makes banking companies on the Indonesia Stock Exchange valuable subjects for research. This research aims to examine the factors influencing the value of companies in the banking sector listed on the Indonesia Stock Exchange from 2016 to 2022. The study employs a quantitative method, collecting data from the annual financial reports of banks listed on the Indonesia Stock Exchange. The research results indicate that Profitability, Liquidity, and Company Growth significantly influence Company Value, while Capital Structure does not significantly affect Company Value. Thus, it implies that financial performances give partial impact to the researched company values. Unlike the other from the financial performances being discussed, the capital structure does not give significant impact towards the company value.

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Published

2023-11-18

How to Cite

Proud, L. M., & Suhendra, E. S. (2023). Financial Performance and Company Values: A Study in the Banking Sector . Indatu Journal of Management and Accounting, 1(2), 60–68. https://doi.org/10.60084/ijma.v1i2.96

Issue

Vol. 1 No. 2 (2023): December 2023

Section

Articles

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Copyright (c) 2023 Laura Michelia Proud, Euphrasia Susy Suhendra

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This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.