Determinants of Financial Company Value Listed in Indonesia Stock Exchange

DOI

10.2991/978-2-38476-273-6_57How to use a DOI?

Keywords

Firm Value; Ownership Structure; Board Size; Board Committee; Equity Ratio

Abstract

Financial institutions are at the forefront of economic growth. Investments in this sector are highly attractive. Investors consider the value of an enterprise in their investments. It is important to understand the determining factors of firm value to ensure that the enterprise remains appealing to investors. The aim of this study was to test the influence of concentrated ownership structure, board size, board committee size, audit quality, business age, and shareholder equity ratio on firm value in the financial sector in Indonesia. A total of 23 samples of financial companies were taken using secondary data and purposive sampling method on the Indonesia Stock Exchange for financial sector in Indonesia from 2018 - 2022. Data processing was carried out utilizing multiple regression and Eviews 9. The outcomes indicate that the concentrated ownership structure has both negatively and significantly affect on firm value. Audit quality, business age, and shareholder equity ratio, leverage, and firm size has both positively and significantly affect firm value. The implications of this studies indicate that managers must have a deep understanding of the factors that affect firm value and manage them effectively. For investors, it is hoped that this investigation can help determine healthy investment opportunities based on firm value.

Copyright

© 2024 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Ryandy Ryandy
AU  - Gunawan Muhdi
AU  - Yosina Edekas Yembise Samori
AU  - Farah Margaretha Leon
PY  - 2024
DA  - 2024/08/02
TI  - Determinants of Financial Company Value Listed in Indonesia Stock Exchange
BT  - Proceedings of 5th Borobudur International Symposium on Humanities and Social Science 2023
PB  - Atlantis Press
SP  - 522
EP  - 531
SN  - 2352-5398
UR  - https://doi.org/10.2991/978-2-38476-273-6_57
DO  - 10.2991/978-2-38476-273-6_57
ID  - Ryandy2024
ER  -