Moderation of profitability against determinants company value

Juliana Kadang(1*), Djayani Nurdin(2), Yunus Kasim(3), Husnah Moh(4),

(1) Universitas Tadulako
(2) Tadulako University
(3) Tadulako University
(4) Tadulako University
(*) Corresponding Author

Abstract


Banks in carrying out the intermediation function require additional capital. Therefore, part of the bank's ownership is sold to the public in the form of shares and debt securities. Firm value is one of the indicators for investors in assessing the performance of a company. The aims of this study are: 1) To determine the factors that influence the value of Indonesian banking companies. These factors are capital structure, efficiency and size of the bank. 2) To find out that profitability moderates the value of Indonesian banking companies. This research uses quantitative verification research. The research analysis technique with moderate variables uses the Moderated Regression Analysis (MRA) model. Using secondary data from the financial statements of each bank. The financial reports are downloaded through the Indonesia Stock Exchange (IDX) website. Processing data using the e-Views 11 application. The results of this study show that the capital structure and the size of the bank have a significant positive impact on corporate value. If a bank is inefficient, it will not have a significant impact on corporate value. Profitability as a mitigation variable cannot amplify the impact of capital structure, efficiency, or bank size on corporate value.

Keywords


firm value; capital structure; efficiency; bank size; profitability

Full Text:

PDF

References


Alfadhli, M. S., & Alali, S. (2021). The Effect of Bank Size on Financial Performance: A Case Study on Kuwaiti Banks Keywords Bank Assets Size Return on Assets (ROA) Return on Equity (ROE) Shareholder’s Equity Kuwaiti Banks OLS Regression. Journal of Insurance and Financial Management, 4(June), 11–15.

Almahadin, H. A., & Oroud, Y. (2020). Capital structure-firm value nexus: The moderating role of profitability. Revista Finanzas y Politica Economica, 11(2), 375–386. https://doi.org/10.14718/REVFINANZPOLITECON.2019.11.2.9

Brealey, R.A., Myers, S.C., Allen, F. (n.d.). Principles of Corporate Finance. Tenth Edition. New York, NY, McGraw-Hill Companies, Inc.

Doorasamy, M. (2021). Capital Structure, Firm Value And Managerial Ownership: Evidence from East African countries. Investment Management and Financial Innovations, 18(1), 346–356. https://doi.org/10.21511/imfi.18(1).2021.28

Halimah, S. N. H., & Komariah, E. (2017). Pengaruh ROA, CAR, NPL, LDR, BOPO Terhadap Nilai Perusahaan Bank Umum. Jurnal Akuntansi, Ekonomi Dan Manajemen Bisnis, Vol. 5(No. 1, July 2017,), 14–25.

Heffernan, S. (2005). Modern Banking. John Wiley & Sons Ltd.

Hirdinis, M. (2019). Capital Structure And Firm Size On Firm Value Moderated by profitability. International Journal of Economics and Business Administration, 7(1), 174–191. https://doi.org/10.35808/ijeba/204

Hutabarat, F. M., & Senjaya, V. F. (2016). Tobin’s Q analysis as an indicator used in measuring and analyzing banking industry of companies listed in kompas100 period 2010-2014. Prosiding Seminar Nasional INDOCOMPAC, 465–469.

Indonesia, I. B. (2013). Memahami Bisnis Bank-Modul Sertifikasi Tingkat I General Banking (Edisi ke-1). Penerbit PT. Gramedia Pustaka Utama.

Ishaq, M., Islam, Y., and Ghouse, G. (2021). Tobin’s Q as an Indicator of Firm Performance: Empirical Evidence from Manufacturing Sector Firms of Pakistan. International Journal of Economics and Business Administration, IX(Issue 1), 425–441. https://doi.org/10.35808/ijeba/683

Lie, L. (2009). Penggunaan MRA dengan Spss untuk Menguji Pengaruh Variabel Moderating terhadap Hubungan antara Variabel Independen dan Variabel Dependen. Jurnal Teknologi Informasi DINAMIK, XIV(2), 90–97. https://www.unisbank.ac.id/ojs/index.php/fti1/article/view/95/90

Lumbangaol, F., Trinanda, W. A., Aprilia, P., & Simanjuntak, C. M. (2019). Analisa Rasio Keuangan Terhadap Return on Asset Pada Subsektor Bank Yang Terdaftar Di Bei. JURNAL AKUNTANSI DAN BISNIS : Jurnal Program Studi Akuntansi, 5(1), 53. https://doi.org/10.31289/jab.v5i1.2321

Manoppo, Heven ; Arie, F. V. (2016). Pengaruh Struktur Modal, Ukuran Peruahaan dan Profitabilitas Terhadap Nilai Perusahaan Otomotif di BEI. 4(2), 485–497.

Miglo, A. (2016). Capital Structure in the Modern World. In Capital Structure in the Modern World. https://doi.org/10.1007/978-3-319-30713-8

Miller, R. L. and V. D. D. (2007). Money Banking & Financial Markets (3rd editio). Thomson Advantage Books.

Natsir, K., & Yusbardini, Y. (2017). The Effect of Asset Structure and Firm Size on Firm Value with Capital Structure as Intervening Variable. Journal of Business & Financial Affairs, 06 (04), 218–224. https://doi.org/10.4172/2167-0234.1000298

Nelly, K. M., Ambrose, J., and George, K. (2019). Bank size and financial risk exposure on financial performance of commercial banks in Kenya. International Journal of Financial Research, 10(6), 250–264. https://doi.org/10.5430/ijfr.v10n6p250

Pertiwi, S., & Chusnah, F. N. (2021). the Effect of Financial Performance on Firm Value With Corporate Social Responsibility As Moderated Variables. Economics and Business Solutions Journal, 5(1), 1. https://doi.org/10.26623/ebsj.v5i1.3327

Putri, U. I., and Affandi, A. (2018). Rasio Kepemilikan Dan Rasio Efisiensi Terhadap Profitabilitas Dampaknya Pada Nilai Perusahaan. Jurnal Riset Bisnis Dan Manajemen, 11(1), 40. https://doi.org/10.23969/jrbm.v11i1.871

Rodiyah, W. A., and Sulasmiyati, S. (2018). Pengaruh Return On Investment (ROI), Return On Equity (ROE), Earning Per Share (EPS) dan Economic Value Added (EVA) Terhadap Harga Saham (Studi Pada Perusahaan Sub Sektor Property dan Real Estate yang Terdaftar di Bursa Efek Indonesia (BEI) Periode 2012-2. Jurnal Administrasi Bisnis (JAB), 59(1), 125–133. https://www.neliti.com/id/publications/87892/analisis-kelayakan-investasi-atas-rencana-penambahan-aktiva-tetap-studi-kasus-pa

Rose, P. S. and Hudgins. S. (2020). Bank Management and Financial Services (8th Editio). International Edition, McGraw-Hill.

Schildbach, J. (2017). Large or small ? How to measure bank size. EU Monitor Global, Financial Markets. Deutsche Bank Research Management, 1–24. Snyder, N. (2010). Intermediate Microeconomics and Its Application (11 E). Melissa Acuna.

Sucuahi, W., and Cambarihan, J. M. (2016). Influence of Profitability to the Firm Value of Diversified Companies in the Philippines. Accounting and Finance Research, 5(2). https://doi.org/10.5430/afr.v5n2p149

Suffah, R., and Riduwan, A. (2016). Pengaruh Profitabilitas, Leverage, Ukuran Perusahaan dan Kebijakan Dividen Pada Nilai Perusahaan. Jurnal Ilmu Dan Riset Akuntansi, 5(2), 1–17. https://ejournal.stiesia.ac.id/jira/article/download/1634/1595

Taqi, M., Ajmal, M., & Pervez, A. (2016). Impact of Capital Structure on Profitability of Selected Trading Companies of India. Oman Chapter of Arabian Journal of Business and Management Review, 6(3), 1–16. https://doi.org/10.12816/0033239

Tharu, N. K., & Shrestha, Y. M. (2019). The influence of bank size on profitability: An application of statistics. International Journal of Financial, Accounting, and Management, 1(2). https://doi.org/10.35912/ijfam.v1i2.82

Varotto, S., & Zhao, L. (2018). Systemic risk and bank size. Journal of International Money and Finance, 82, 45–70. https://doi.org/10.1016/j.jimonfin.2017.12.002




DOI: https://doi.org/10.24123/jmb.v22i2.679

Article Metrics

Abstract view : 238 times
PDF - 117 times

Refbacks

  • There are currently no refbacks.




Copyright (c) 2023 Juliana Kadang

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

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License. ISSN: 1412-3789. e-ISSN: 2477-1783.

Google ScholarGoogle ScholarGARUDA - Garba Rujukan Digital
DOAJ
ROADROADEBSCO
mabis statistics