Determinants of Indonesian Banking Company Value: Profitability, Inflation, Firm Size and Leverage

Laynita Sari, Eka Rani Safitri, Ratna Hizrani

Abstract


When making an investment, business value is one of the factors to consider. A rising business value may benefit investors through increased portfolio value, capital gains, more massive dividends, and increased investor confidence. There is a tendency in Indonesian banking business valuations between 2020 and 2022 when the firms' values fluctuate. The purpose of this study was to investigate the relationship between a company's worth and its size, debt, profitability, and inflation. Regression analysis using panel data is the method used to evaluate the connections between study variables. When making an investment, business value is one of the factors to consider. A rising business value may benefit investors through increased portfolio value, capital gains, more massive dividends, and increased investor confidence. There is a tendency in Indonesian banking business valuations between 2020 and 2022 when the firms' values fluctuate. The purpose of this study was to investigate the relationship between a company's worth and its size, debt, profitability, and inflation. Regression analysis using panel data is the method used to evaluate the connections between study variables.

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References


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