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

Hesty Juni Tambuati Subing, Rini Susiani

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.

JEL Classification: G32, L25

DOI: https://doi.org/10.26905/jkdp.v23i1.2405


Keywords


Company Age; Company Value; Debt to Equity Ratio; Earning Per Share; Interest Income; Managerial Ownership

Full Text:

PDF

References


Abbas, A., Naqvi, H. A., & Mirza, H. H. (2013). Impact of large ownership on firm performance: A case of non-financial listed companies of Pakistan. World Applied Sciences Journal, 21(8), 1141-1152. https://doi.org/10.5829/idosi.wasj.2013.21.8.1916

Abdolkhani, H., & Jalali, R. (2013). Effect of managerial ownership concentrated on firm return and value: Evidence from Iran Stock Market. International Journal of Academic Research in Accounting, Finance, and Management Sciences, 3(1), 46-51.

Abdolmanafi, S., Hassani, M., Mehrankaveh, & Farzadi, S. (2013). The effect of mangerial stock ownership on the value of listed companies in Tehran Stock Exchange. Advances in Environmental Biology, 7(8), 1612-1615.

Asmirantho, E. (2014). Effect of financial fundamental factors and macroeconomics to stock return with implications on corporate value (Tobin’s Q) real estate and property go public in Indonesia. Journal Business & Management, 1(1), 1235-1240.

Baele, L., Jonghe, O. D., & Vennet, R. V. (2007). Does the stock market value bank diversification? Journal of Banking and Finance, 31(7), 1999-2023. https://doi.org/10.1016/j.jbankfin.2006.08.003

Brigham, E. F., & Houston, J. F. (2001). Manajemen Keuangan. Edisi Kedelapan. Jakarta: Erlangga.

Brigham, E. F., & Houston, J. F. (2011). Dasar-Dasar Manajemen Keuangan Perusahaan. Jakarta: Erlangga.

Brighi, P., & Venturelli, V. (2014). How do income diversification, firm size, and capital ratio affect performance? Evidence for bank holding companies. Applied Financial Economics, 24(21), 1375-1392. https://doi.org/10.1080/09603107.2014.925064

Carter, D. A., Simkins B. J., & Simpson, W. G. (2003). Corporate governance, board diversity, and firm value. The Financial Review, 38, 33–53. https://doi.org/10.1111/1540-6288.00034

Cheng, M. C., & Tzeng, Z. C. (2011). The effect of leverage on firm value and how the firm financial quality influence on this effect. World Journal of Management, 3(2), 30-53.

Chiorazzo, V., Milani, C., & Salvini, F. (2008). Income diversification and bank performance: evidence from Italian banks. Journal of Financial Services Research, 33(3), 181-203. https://doi.org/10.1007/s10693-008-0029-4

Choi, H. M., Sul, W., & Min, S. K. (2012). Foreign board membership and firm value in Korea. Management Decision, 50(2), 207-233. https://doi.org/10.1108/00251741211203533

Christiawan, Y. J. & Tarigan, J. (2007). Kepemilikan manajerial: Kebijakan hutang, kinerja dan nilai perusahaan. Jurnal Akuntansi dan Keuangan, 9(1), 1-8. https://doi.org/10.9744/jak.9.1.pp.%201-8

Dahya, J., Dimitrov, O., & McConnell, J. J. (2007). Dominant shareholders, corporate boards, and corporate value: a cross-country analysis. Journal of Financial Economics, 87(1), 73-100. https://doi.org/10.1016/j.jfineco.2006.10.005

Driffield, N., Mahambare, V., & Pal., S. (2007). How does ownership structure affect the capital structure and firm value? Economics of Transition, 15(3), 535-573. https://doi.org/10.1111/j.1468-0351.2007.00291.x

Dewi, A. S. M., & Wirajaya, A. (2013). Pengaruh struktur modal, profitabilitas, dan ukuran perusahaan pada nilai perusahaan. E-Jurnal Akuntansi Universitas Udayana, 4(2), 358-372.

Endraswati, H. (2012). Pengaruh struktur kepemilikan dan kebijakan dividen terhadap nilai perusahaan dengan kebijakan hutang sebagai variabel moderating pada perusahaan di BEI. Thesis. STAIN Salatiga.

Gusni & Vinelda, A. (2016). Corporate governance, profitabilitas, dan nilai perusahaan. Prosiding Seminar Nasional Dinamika Global: Rebranding Keunggulan Kompetitif Berbasis Kearifan Local, 355–368.

Harahap, S. S. (2010). Analisa Kritis atas Laporan Keuangan. Jakarta: PT Raja Grafindo Persada.

Hasibuan, V., Dzulkirom, A. R. M., & Endang, N. P. N. G. W. (2016). Pengaruh leverage dan profitabilitas terhadap nilai perusahaan (studi pada perusahaan property and real estate yang terdaftar di Bursa Efek Indonesia periode tahun 2012-2015). Jurnal Administrasi Bisnis (JAB), 39(1), 139-147.

Hermuningsih, S. (2013). Profitability, growth opportunity, capital structure, and the firm value. Bulletin of Monetary, Economics, and Banking, 16(2), 116-136. https://doi.org/10.21098/bemp.v16i2.440

Hidayati, E. E. (2010). Analisis pengaruh DER, DPR, ROE, dan SIZE terhadap PBV perusahaan manufaktur yang listing di BEI periode 2005-2007. Jurnal Bisnis Strategi, 19(2), 166-174. https://doi.org/10.14710/jbs.19.2.166-174

Husnan, S. (2004). Dasar-Dasar Teori Portofolio dan Analisis Sekuritas. Yogyakarta: UPP AMP YKPN.

Jensen, M. C. (2001). Value maximization, stakeholder theory, and the corporate objective function. Business Ethics Quarterly, 12(2), 235-256. https://doi.org/10.2307/3857812

Kasmir. (2012). Financial Statement Analysis. Jakarta: PT. Raja Grafindo Persada.

Kusumajaya, D. K. O. (2011). Pengaruh struktur modal dan pertumbuhan perusahaan terhadap profitabilitas dan nilai perusahaan pada perusahaan manufaktur di Bursa Efek Indonesia. Thesis. Fakultas Ekonomi Universitas Udayana.

Lee, M. & Choi, M. (2015). Analysis on time-lag effect of research and development investment in the pharmaceutical industry in Korea. Osong Public Health Res Perspect, 6(4), 241-248. https://doi.org/10.1016/j.phrp.2015.07.001

Lind, D. A., Marchal, W. G., & Wathen, S. A. (2005). Statistical Techniques in Business & Economics. 12th Edition. New York: McGraw-Hill.

Loderer, C., Neusser, K., & Waelchli, U. (2011). Firm age and survival. SSRN Electronic Journal.

Marlina, T. (2013). Pengaruh earning per share, return on equity, debt to equity ratio, dan size terhadap price to book value. Jurnal Ilmiah Akuntansi Kesatuan, 1(1), 59-72.

Modigliani, F., & Miller, M. H. (1958). The cost of capital, corporation finance, and the theory of investment. The American Economic Review, 48(3), 261-297. Retrieved from: http://www.jstor.org/stable/1812919

Ningsih, H. R. (2013). The effect of managerial ownership and return on asset to firm value (a case study at banking industry are listed in Indonesia Stock Exchange). Journal of Universitas Komputer Indonesia, 1-13.

Pirashanthini, S., & Balasundaram, N. (2013). Capital structure and firm value: An empirical study of listed manufacturing firm in Sri Lanka. Merit Search Journal of Art, Social Science, and Humanities, 1(6), 86-91.

Priatinah, D., & Kusuma, P. A. (2012). Pengaruh return on investment (ROI), earnings per share (EPS), dan dividend per share (DPS) terhadap harga saham perusahaan pertambangan yang terdaftar di Bursa Efek Indonesia (BEI) periode 2008-2009. Jurnal Nominal, 1(1), 50-64.

Putra, T. P., Chabachib, M., Haryanto, M., & Pangestuti, I. R. D. (2007). Pengaruh kinerja keuangan dan beta saham terhadap price to book value (studi pada perusahaan real estate dan property yang listed di Bursa Efek Indonesia periode tahun 2004-2006). Journal of Management and Organizational Studies, 4(2), 81-90.

Rachman, A. A. (2012). Pengaruh corporate social responsibility, kepemilikan manajerial, dan kepemilikan institusional terhadap nilai perusahaan pada perusahaan manufaktur yang terdaftar di BEI 2008-2010. Thesis. STIE Perbanas Surabaya.

Salvatore, D. (2005). Managerial Economics. Fifth Edition. Singapore: Thomson Learning.

Sukaenah. (2015). Pengaruh earning per share (EPS), ukuran perusahaan, profitabilitas, leverage, dan sales growth terhadap nilai perusahaan pada industri makanan dan minuman yang terdaftar di Bursa Efek Indonesia tahun 2008-2013. Jurnal Ilmiah Mahasiswa S1 Akuntansi Universitas Pandanaran, 1(1), 1-18.

Sukirno. (2015). Ini Data Perbandingan Lengkap Ekonomi 2015 versus Krisis 1998 & 2008. Retrieved from: https://finansial.bisnis.com/read/20150902/9/468022/ini-data-perbandingan-lengkap-ekonomi-2015-versus-krisis-1998-2008

Sulong, Z., & Nor, F. M. (2008). Dividends, ownership structure, and board governance on firm value: Empirical evidence from Malaysian listed firms. Malaysian Accounting Review, 7(2), 55-94.

Suteja, J., & Manihuruk, W. (2009). Pengaruh struktur modal, kepemilikan, dan faktor eksternal pada penentuan nilai perusahaan. Trikonomika, 8(2), 78-89.

The World Bank. (2012). Global Financial Development Report 2013: Rethinking the Role of State in Finance. Retrieved from https://openknowledge.worldbank.org

Welim, M. F. (2013). Pengaruh kepemilikan manajerial dan kepemilikan institusional terhadap nilai perusahaan (studi empiris pada perusahaan perbankan yang terdaftar di BEI). Thesis. Universitas Atma Jaya Yogyakarta.

Warapsari, A. A. A. U., & Suaryana, I . G. N. A. (2016). Pengaruh kepemilikan manajerial dan institusional terhadap nilai perusahaan dengan kebijakan utang sebagai variabel intervening. E-Journal Akuntansi Universitas Udayana, 16(3), 2288-2315.

Zhao, Y. (2013). The relationship between share price gains, corporate performance, and risk. Scientific Research, 5(3B), 110-112. https://doi.org/10.4236/ib.2013.53B023




DOI: https://doi.org/10.26905/jkdp.v23i1.2405

Refbacks

  • There are currently no refbacks.


Bookmark and Share


Jurnal Keuangan dan Perbankan (Journal of Finance and Banking)

Diploma Program of Banking and Finance, Faculty of Economics and Business, University of Merdeka Malang

Published by University of Merdeka Malang

Mailing Address:
2nd floor Finance and Banking Building, Jl. Terusan Raya Dieng No. 57 Malang, East Java, Indonesia
Phone: +62 813-3180-1534
Email: jkp@unmer.ac.id

This work is licensed under a Creative
Commons Attribution-ShareAlike 4.0