The Role of Financial Performance in Determining The Firm Value

DOI

10.2991/aicar-18.2019.15How to use a DOI?

Keywords

CAR; LDR; NPL; DER; ROE; firm value

Abstract

This study aims to determine the effect of CAR, LDR, NPL, DER and ROE on the Firm Value simultaneously or partially on the Banking Sector listed on the Indonesia Stock Exchange. The method of analysis used in this research is the associative method with multiple regression analysis techniques and the aims of classical assumptions. The data used are secondary data sourced from Indonesian Capital Market Directory (ICMD) and Annual Report from Indonesia Stock Exchange (IDX) in the form of financial statements for 2010-2015 period in Banking Sector listed on Indonesia Stock Exchange. This research is expected to be especially for investors as a consideration in making investment decisions in the capital market, as well as for company management is expected to be a consideration in making decisions on stock prices in order to maximize the value of the company. The results showed that simultaneously CAR, LDR, NPL, DER and ROE have a significant effect on Firm Value. DER partially have a negative and significant effect on Firm Value, CAR and NPL have positive and significant effect to Firm Value, while LDR and ROE have insignificant influence to Firm Value.

Copyright

© 2019, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Sri Murni
AU  - Harijanto Sabijono
AU  - Joy Tulung
PY  - 2019/02
DA  - 2019/02
TI  - The Role of Financial Performance in Determining The Firm Value
BT  - Proceedings of the 5th Annual International Conference on Accounting Research (AICAR 2018)
PB  - Atlantis Press
SP  - 66
EP  - 70
SN  - 2352-5428
UR  - https://doi.org/10.2991/aicar-18.2019.15
DO  - 10.2991/aicar-18.2019.15
ID  - Murni2019/02
ER  -