Track: Business Management

Abstract

Abstract

This study examines the influence of capital structure, profitability, and dividend payout on the firm value of banking subsector firms. The focus of this study is the bank subsector companies listed on the Indonesia Stock Exchange between 2013 and 2021. The sample for this study consists of banks listed on the Indonesian Stock Exchange (IDX) between 2013 and 2021. Purposive sampling was used to select these institutions for sampling based on their compliance with the research requirements. The population as a whole consists of 34 businesses, while the subset of enterprises meeting the specified criteria consists of 8 samples with a research duration of 9 years, yielding a total of 72 data observations. The panel regression technique reveals that the capital structure has no statistically significant effect on the value of a company. Nevertheless, return on assets has a strong positive correlation with firm value. In contrast, earnings per share have a negative relationship with firm value. Furthermore, dividend payments have no statistically significant effect on the value of a company. This paper provides new empirical evidence regarding the influence of capital structure, profitability, and dividend distribution on the Indonesian banking sector

Keywords

Bank, Capital Structure,  Dividend, Firm Value, Profitability