Determinants of Financial Company Value Listed in Indonesia Stock Exchange Ryandy, Gunawan Muhdi, Yosina Edekas Yembise Samori, Farah Margaretha Leon
Universitas Trisakti
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 struc-ture, 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 finan-cial 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, lev-erage, and firm size has both positively and significantly affect firm value. The implications of this studies indicate that managers must have a deep un-derstanding of the factors that affect firm value and manage them effective-ly. For investors, it is hoped that this investigation can help determine healthy investment opportunities based on firm value.
