The Effect of ROA, DPR, EPS, and TATO on the Firm Value on Banking Companies Listed on BEI 2018-2020 Period

Abstract

The company's long-term goal is to maximize the value of the company, price to book value (PBV) ratio is one of the financial ratios used to quantify company worth, and it is employed in this study to represent firm value. The goal of this research was to see how return on assets, dividend payout ratio, earnings per share, and total asset turnover affected the value of banking companies listed on the Indonesia Stock Exchange from 2018 to 2020. Purposive sampling was employed to gather a total sample of 10 samples over three years, resulting in a total of 30 data points in this study. Multiple linear regression analysis methods with a significant level of 5% are employed in the technical study of the data (0.05). The findings show that return on assets and earnings per share have a positive and considerable impact on the value of a company (price to book value). The dividend payment ratio and total asset turnover variables, on the other hand, have no bearing on the firm's value. The independent variable's ability to explain the link between the dependent and independent variables, namely the firm value of 0.814 or (81.4 %).

The effect of independent commissioners, EVA, and ROA on firm value

“…Research by Suri et al (2020) states that ROA does not affect firm value. This is contrary to the research by Muhammad (2022), Rahim (2020), and Krisnando (2019) stating that ROA has an impact on firm value. An increasing ROA value year by year can indicate that the profits generated by the company are consistently growing.…”

“…When ROA increases, the firm value of consumer goods sector companies listed on the stock exchange also increases. This study confirms the findings of Muhammad (2022), Rahim (2020), andKrisnando (2019), who state that ROA affects firm value. In agency theory, management is expected to efficiently manage company assets for the benefit of owners, which ultimately affects firm value.…”

“…ROA is an indicator that reflects the efficiency of generating profits from a company's assets. Studies conducted by Muhammad (2022), Rahim (2020), Karlina et al (2019), andKrisnando (2019) have consistently demonstrated the impact of ROA on firm value. However, these findings contradict the study conducted by Suri et al (2020), which suggests that ROA does not have an impact on firm value.…”

Financial Performance, Debt-to-Equity Ratio, Return on Assets, and Total Asset Turnover on Earnings Per Share and Stock Price as Moderator

“…Furthermore, the alignment of this finding with certain previous studies (Muhammad, 2022) resonates with the established financial wisdom regarding the implications of the Debt-to-Equity Ratio. However, the presence of contrasting findings (Chandra & Osesoga, 2021) underscores the dynamic nature of this relationship.…”

“…Intriguingly, this finding echoes the sentiments elucidated in certain antecedent studies (Muhammad, 2022), further reinforcing the validity of the established relationship. Contradictory indications have been documented in certain quarters (Chandra & Osesoga, 2021), signaling the complexity inherent in such relationships and the contextual nuances that dictate their manifestation.…”