Determinants of Firm Value in the Banking Subsector Listed on the Indonesia Stock Exchange: The Role of Financial Ratios and Dividend Policy

Authors

  • Ni Komang Noviyanti Universitas Terbuka, Banten, Indonesia

DOI:

https://doi.org/10.32493/jiaup.v14i1.55241

Keywords:

Banking Sector, Dividend Policy, Financial Performance, Firm Value

Abstract

Firm value reflects market perceptions of a company’s performance and future prospects. This study examines the influence of financial ratios and dividend policy on firm value in the Indonesian banking subsector. The population of this study comprises all banking companies listed on the Indonesia Stock Exchange (IDX), with a research sample consisting of 45 banks observed over the 2022–2024 period, resulting in balanced panel data. The data used are secondary data obtained from published annual reports and official IDX documentation. Data analysis was conducted using panel data regression techniques, including model selection through the Chow test and Hausman test, followed by estimation using the Fixed Effects Model with Feasible Generalized Least Squares (FGLS) to address heteroskedasticity and cross-sectional dependence. The results indicate that profitability, liquidity, and capital adequacy play essential roles in enhancing firm value, whereas firm size and dividend policy exhibit a negative effect on market valuation, and credit risk shows no significant impact. These findings suggest that strong internal fundamentals and efficient financial management are crucial in strengthening investor confidence and improving firm value within the Indonesian banking industry.

References

Abidi, R. (2023). Effect of LDR, CAR, BOPO, and Inflation on NPL. E-Journal of Economics, 8(1), 45–60.

Adriani, I. (2021). Analisis Kebijakan Dividen, Struktur Modal dan Ukuran Perusahaan terhadap Nilai Perusahaan pada Sektor Manufaktur. Jurnal DECISION, Universitas Muhammadiyah Parepare. https://jurnal.umpar.ac.id/index.php/decision/article/view/1500

Adriani, N. (2022). Peran intermediasi keuangan dalam mendorong pertumbuhan ekonomi Indonesia. Jurnal Ekonomi dan Keuangan, 10(1), 12–24.

Ahmed, A. M. (2023). Effect of Firm Size on the Association between Capital Structure and Profitability in Developing Countries. Sustainability, 15(14), 11196. https://doi.org/10.3390/su151411196

Al-Najjar, B., & Hussainey, K. (2011). The relationships between corporate governance and firm value: Evidence from the UK. Journal of Corporate Governance. https://doi.org/10.1108/14720701111159217

Anisa, H. V. (2021). The Effect of NPL, GCG Self Assessment, ROA, and CAR on Firm Value. Jurnal Ekonomi dan Bisnis, 24(2), 135–150. https://doi.org/10.24912/jeb.v24i2.135

Arumdani, M. S., Winarni, & Kusuma, S. Y. (2025). Pengaruh return on risk asset, net profit margin, earnings per share, dan inflasi terhadap harga saham bank digital periode 2020–2023. Jurnal Ilmiah Akuntansi Universitas Pamulang, 13(2), 163–171.

Bai, J., Choi, S. H., & Liao, Y. (2021). Feasible generalized least squares for panel data with cross-sectional and serial correlations. Empirical Economics, 60(1), 309–326. https://doi.org/10.1007/s00181-020-01977-2

Baltagi, B. H. (2021). Econometric Analysis of Panel Data (6th ed.). Wiley.

Brigham, E. F., & Houston, J. F. (2019). Fundamentals of Financial Management (15th ed.). Boston: Cengage Learning.

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

Dewi, I. G. A., & Susila, A. (2021). Pengaruh profitabilitas, leverage, dan kebijakan dividen terhadap nilai perusahaan. Jurnal Ekonomi dan Bisnis Indonesia, 9(1), 40–50.

Hidayat, R. (2022). Pengaruh Kebijakan Dividen terhadap Nilai Perusahaan pada Perusahaan Manufaktur yang Terdaftar di Bursa Efek Indonesia. Fair Value: Jurnal Ilmiah Akuntansi, 8(2), 112–124. https://doi.org/10.24912/fv.v8i2.1790

Jagirani, A. A., Chee, H. K., & Daud, N. (2023). The relationship between financial risks and firm value: A study of banking institutions. International Journal of Financial Studies, 11(2), 88–101.

Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs, and ownership structure. Journal of Financial Economics, 3(4), 305–360. https://doi.org/10.1016/0304-405X(76)90026-X

Kansil et al. (2021). Kinerja Keuangan dan Nilai Perusahaan pada Sektor Perbankan Indonesia. Jurnal EMBA, Universitas Sam Ratulangi. https://ejournal.unsrat.ac.id/index.php/emba/article/view/34665

Kraus, A., & Litzenberger, R. H. (1973). A state-preference model of optimal financial leverage. Journal of Finance, 28(4), 911–922. https://doi.org/10.2307/2978343

Lambada, O. M. C. (2025). The Effect of CAR, LDR, OER, and Bank Size on NPL Mediated by GCG in KBMI III and IV. International Journal of Economics, Business, and Management, 4(1), 1–15. https://doi.org/10.54099/ijebm.v4i1.1336

Le Gallo, J., & Sénégas, M.-A. (2023). On the proper computation of the Hausman test statistic in standard linear panel data models: Some clarifications and new results. Econometrics, 11(4), 25.

Liang, L., et al. (2020). Impact of liquidity management on the performance of Chinese banks. Sustainability. https://doi.org/10.3390/su12187313

Muliyani et al. (2025). Residual Income dan Arus Kas Operasi terhadap Return Saham Dengan Kebijakan Dividen sebagai Pemoderasi. Jurnal Ilmiah Akuntansi Universitas Pamulang, 13(2).

Naibaho, P. H., Adam, A., & Simatupang, S. (2024). Analysis of the effect of return on assets, solvency, and firm size on firm value. Journal of Applied Accounting and Finance, 8(1), 25–37.

Nabilah, R., Khasanah, S., & Nuryati, T. (2023). Pengaruh leverage dan kebijakan dividen terhadap nilai perusahaan. Jurnal Sinomika, 1(5), 233–240. https://doi.org/10.54443/sinomika.v1i5.588

Oktavia, R., Silvia, A., & Novalita, D. (2022). Digitalisasi dan nilai perusahaan: Perspektif tata kelola dan inovasi. Jurnal Keuangan dan Bisnis Digital, 2(1), 55–67.

Oktaviani, T., & Setiawaty, L. (2022). Analisis Pengaruh Struktur Modal, Ukuran Perusahaan, dan Profitabilitas terhadap Nilai Perusahaan. Jurnal Ilmu Akuntansi Mulawarman (JIAM). https://journal.feb.unmul.ac.id/index.php/JIAM/article/view/9506

Rahmawati, D., & Subakir, M. (2022). Determinan nilai perusahaan dengan pendekatan kinerja keuangan. Jurnal Riset Akuntansi Kontemporer, 14(3), 221–232.

Rahayu, S., & Sopian, S. (2020). Pengaruh Ukuran Perusahaan, Pertumbuhan Penjualan, dan Profitabilitas terhadap Nilai Perusahaan. Jurnal Riset Manajemen dan Akuntansi, 7(1), 67–82. https://doi.org/10.24912/jrma.v7i1.4467

Simanungkalit, J., Ramashar, H., & Agustiawan, H. (2022). Analisis faktor-faktor yang memengaruhi nilai perusahaan. Jurnal Akuntansi Terapan Indonesia, 3(2), 115–126. https://doi.org/10.36085/jakta.v3i2.3623

Situmorang et al. (2023). Pengaruh Risiko Kredit dan Manajemen Laba terhadap Nilai Perusahaan pada Sektor Perbankan di BEI. Jurnal Akuntansi Manajemen (JAM). https://jurnal.risetilmiah.ac.id/index.php/JAM/article/view/766

Spence, M. (1973). Job market signaling. The Quarterly Journal of Economics, 87(3), 355–374. https://doi.org/10.2307/1882010

Tsania, A. A. F., Mudjiyanti, R., Santoso, S. B., & Santoso, S. E. B. (2025). Pengaruh kepemilikan institusional, profitabilitas, dan ukuran perusahaan terhadap kualitas laba. Jurnal Ilmiah Akuntansi Universitas Pamulang, 13(2), 183–190.

Wijaya, A., & Mappadang, A. (2022). Efek Kinerja Keuangan dan Kebijakan Keuangan terhadap Nilai Perusahaan. AKURASI: Jurnal Riset Akuntansi dan Keuangan, 3(3), 137–150. https://doi.org/10.36407/akurasi.v3i3.529

Wooldridge, J. M. (2010). Econometric Analysis of Cross-Section and Panel Data (2nd ed.). MIT Press

Downloads

Published

2026-01-30

Issue

Vol. 14 No. 1 (2026): Jurnal Ilmiah Akuntansi Universitas Pamulang

Section

Articles

License

Copyright (c) 2026 Ni Komang Noviyanti

Creative Commons License

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

Authors who publish with this journal agree to the following terms:

    1. Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
    2. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
    3. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).

JIAUP: Jurnal Ilmiah Akuntansi Universitas Pamulang have CC-BY-SA or an equivalent license as the optimal license for the publication, distribution, use, and reuse of scholarly work.

In developing strategy and setting priorities, JIAUP: Jurnal Ilmiah Akuntansi Universitas Pamulang recognize that free access is better than priced access, libre access is better than free access, and libre under CC-BY-SA or the equivalent is better than libre under more restrictive open licenses. We should achieve what we can when we can. We should not delay achieving free in order to achieve libre, and we should not stop with free when we can achieve libre.