PENGARUH KINERJA KEUANGAN TERHADAP NILAI PERUSAHAAN PADA PERUSAHAAN PERBANKAN DI BURSA EFEK INDONESIA

Abstract

This research aimed to examine the effect of financial performance on the firm value at a banking company in the Indonesia Stock Exchange. The financial performance was measured by liquidity which was a proxy with the Loan to Deposit Ratio, profitability was a proxy with Return On Asset, solvability was proxy with Debt to Equity Ratio and firm value was proxy with Price to Book Value. The research used quantitative research. Furthermore, the sample collection technique of this research used purposive sampling, i.e., a sample selection with determining criteria. Based on the purposive sampling method it obtained 170 samples from 34 banking companies listed on the Indonesia Stock Exchange during the 2016-2020 period. Moreover, the research analysis method used multiple linear regression analysis with SPSS 26 version. The research result indicated that liquidity (LDR) had a negative effect on the firm value therefore H1 was declined, profitability (ROA) had a positive effect on the firm value therefore H2 was accepted, and solvability (DER) had a negative effect on the firm value therefore H3 was declined.