The Effect Of Financial Performance, Good Corporate Governance, And Human Capital On Corporate Value In Banking Companies Listed On Bei

  • Alimuddin, Eko Edy Susanto, Ibriati Kartika Alimuddin

Abstract

The company’s value is a combination of the value of the issued stock market and the debt markets’ value of a company by maximizing the value of the stock. Several factors affect the value of the company, among other Debt to Equity Ratio(DER), Earnings per Share (EPS), Net Profit Margin (NPM), Good Corporate Governance (GCG), and Human Capital (HC). The research is aimed to examine the effect of Debt to Equity Ratio, Earnings per Share, Net Profit Margin, Good Corporate Governance, and Human Capital of the value of the company (Tobin's q), are simultaneously or partial. Methods of study associative with the technical analysis of multiple regressions. The population of this research is the all banking company listed on the Stock Exchange Indonesia (IDX) for 2016 – 2018 period. The research collected data using a purposive sampling technique, which was obtained from 90 observations of 30 companies for 3 years. This study used hypothesis testing and multiple linear regressions to analyze data. The results of the study have demonstrated that Debt to Equity Ratio, Earnings per Share, Net Profit Margin, Good Corporate Governance, and Human Capital are both simultaneously and partially influenced towards the company's value significantly. Debt to Equity Ratio, Earnings per Share, and Good Corporate Governance variables positively and significantly affect, while the variable Net Profit Margin and Human Capital affect negatively and significantly toward the value of the company.

Published
2020-05-16