Analysis of the Effect of Profitability, Solvability, and Dividend Policy on Banking Firm Value
Article Sidebar
Main Article Content
Abstract
This research was conducted to investigate the effect of profitability, solvability, and dividend policy on the maximization of firm value. In this study, profitability was represented by Return on Equity (ROE) and Return on Assets (ROA), while solvability was examined by the Debt to Equity ratio (DER) and Debt to Assets ratio (DAR). The dividend payout ratio (DPR) was a proxy for the firm’s dividend policy, and firm value was examined by Price to Book Value (PBR). The purpose of this study was to examine the influence of profitability, solvability, and dividend policy on firm value. The sample included banks listed on the Indonesia Stock Exchange for the 2012-2014 period with a total of five banks using purposive sampling method. The analysis tool used was multiple regression analysis. Results from an F-test showed that the model has prediction ability of 80.4%, while the remaining 19.6% were influenced by other factors outside of this model. ROE had a significantly positive influence on firm value, implying that higher profitability (ROE) of a firm will result in higher firm value. However, solvability (DAR) was significantly negative. An increase in solvability (DAR) of a firm will result in lower firm value.
Article Details
Copyright: Asia-Pacific International University reserve exclusive rights to publish, reproduce and distribute the manuscript and all contents therein.
References
Anzlina, C., & Rustam. (2013). Pengaruh tingkat likuiditas, solvabilitas, aktivitas, dan profitabilitas terhadap nilai perusahaan pada perusahaan real estate dan property di BEI tahun 2006–2008 [The effect of levels of liquidity, solvency, activity, and profitability on company value in real estate and property companies on the Stock Exchange in 2006–2008]. Jurnal Ekonomi, 16(2), 67–75. Retrieved from https://repository.usu.ac.id/bitstream/handle/123456789/43529/corry%20rustam.pdf?sequence = 1&isAllowed=y
Artini, L., &Puspaningsih, N. (2011). Struktur kepemilikan dan struktur modal terhadap kebijakan dividen dan nilai perusahaan [Effects of ownership and capital structure on dividend policy and company value]. Jurnal Keuangan dan Perbankan, 15(1), 66–75.
Bangun, N., & Wati, S. (2007). Analisis pengaruh profitabilitas dan kebijakan dividen terhadap nilai perusahaan perdagangan, jasa, dan investasi yang terdaftar di Bursa Efek Jakarta [Analysis of effect of profitability and dividend policy on the value of trading, service, and investment companies listed on the Jakarta Stock Exchange]. Jurnal Akuntansi, 2, 107–120.
Brown, R., & Gutterman, A. (Eds.). (2005). Emerging companies guide: A resource for professionals and entrepreneurs. Chicago, IL: ABA Publishing. Retrieved fromhttps://books.google.co.id/books?id= XqDniFJ5CWQC&pg=PA176&lpg=PA176&dq=solvability+is+the+ability+of+the+company+to+generate+profit+during+a+certain+period+to+pay+its+debts,+both+short&source=bl&ots=77BL-mtfhE&sig= ACfU3U3sNCXu-5YZiTZ9Nc3g-VJVUtBT2g&hl=en&sa=X&ved=2ahUKEwjGpKLNw6HnAhUV6nMBHe TGD3QQ6AEwAHoECAcQAQ#v=onepage&q=solvability%20is%20the%20ability%20of%20the%20company%20to%20generate%20profit%20during%20a%20certain%20period%20to%20pay%20its%20debts%2C%20both%20short&f=false
Chen, L., & Chen, S. (2011). The influence of profitability on firm value with capital structure as the mediator and firm size and industry as moderators. Investment Management and Financial Inovations, 8(3), 121–129.
Fadhli, M. (2015). Pengaruh likuiditas, solvabilitas dan profitabilitas terhadap nilai perusahaan dengan kebijakan dividen sebagai variabel moderasi pada perusahaan perbankan, asuransi & lembaga keuangan lainnnya di Bursa Efek Indonesia tahun 2010–2013 [The effects of liquidity, solvency, and profitability on firm value with dividend policy as a moderating variable in banking, insurance & other financial institutions on the Indonesia Stock Exchange from 2010–2013]. Jom FEKON, 2(2), 1–14. Retrieved from https://media.neliti.com/media/publications/34048-ID-pengaruh-likuiditas-solvabilitas-dan-profitabilitas-terhadap-nilai-perusahaan-de.pdf
Fakhruddin, M., & Hardianto. M. (2001). Perangkat dan model analisis investasi di pasar modal [Investment analysis tools and models in capital markets]. Jakarta, Indonesia: PT. Elex Media Komputindo.
Fuad, M., Christine, H., Nurlela, Sugiarto, & Paulus, Y. (2006). Pengantar Bisnis [Introduction to business]. Jakarta, Indonesia: Gramedia Pustaka Utama.
Hasna, F. (2014). Pengaruh tata kelola perusahaan, leverage, dan profitabilitas terhadap nilai perusahan [The effects of corporate governance, leverage, and profitability on company value]. Jurnal Ilmu Manajemen, 2(2), 537–547.
Hermuningsih, S. (2013). Pengaruh profitabilitas, growth opportunity, struktur modal terhadap nilai perusahaan pada perusahaan publik di Indonesia [The effects of profitability, growth opportunities, and capital structure on company value in Indonesian public companies]. Buletin Ekonomi Moneter dan Perbankan, 16(2), 127–148.
Herprasetyo, B. (2009). Berani utang pasti untung (Ed. Kedua) [Nothing ventured, nothing gained] (2nd ed.)]. Yogyakarta, Indonesia: Indonesia Cerdas.
Handono, M (2009). Intisari manajemen keuangan. Jakarta, Indonesia: PT Grasindo.
Hirdinis, M (2019). Capital structure and firm size on firm value moderated by profitability. International Journal of Economics and Business Administration, 3(1), 174–191 retrieved from file:///C:/Users/ user/Downloads/Capital%20Structure%20and%20Firm%20Size%20on%20Firm%20Value%20Moderated%20by%20Profitability.pdf
Juliandi, A., Irfan, & Manurung, S. (2014). Metodologi Penelitian Bisnis: Konsep dan Aplikasi [Business research methodology: Concepts and applications]. Medan, Indonesia: Umsu Press.
Kontesa, M. (2015). Capital structure, profitability, and firm value. What’s new? Research Journal of Finance and Accounting, 6(20), 185–192.
Kuswandi. (2006). Memahami rasio-rasio keuangan bagi orang awam [Understanding financial ratios for citizens]. Jakarta, Indonesia: PT Elex Media Komputindo.
Mardiyati, U., Ahmad, G., & Putri, R. (2012). Pengaruh kebijakan dividen, kebijakan hutang dan profitabilitas terhadap nilai perusahaan manufaktur yang terdaftar di Bursa Efek Indonesia (BEI) periode 2005–2010 [The effects of dividend policy, debt policy and profitability against the value of manufacturing companies listed on the Indonesia Stock Exchange (IDX) for the period from 2005–2010]. Jurnal Riset Manajemen Sains Indonesia, 3(1), 1–17.
Moningka, P. (2013). Analisis faktor-faktor yang mempengaruhi nilai perusahaan pada perusahaan-perusahaan manufaktur di Bursa Efek Indonesia Tahun 2009–2011 [Analysis of factors affecting company value in manufacturing companies listed on the Indonesia Stock Exchange from 2009–2011]. Jurnal Of Business and Economics, 12, 27–38.
Natarsyah, S. (2000). Analisis pengaruh beberapa faktor fundamental dan risiko sistematik terhadap harga saham: Kasus industri barang konsumsi yang go-publik di pasar modal Indonesia [Analysis of the influence of several fundamental factors and systematic risk on stock prices: The case of consumer goods industry firms that go public in Indonesian capital markets]. Jurnal Ekonomi dan Bisnis Indonesia, 15(3), 294–312.
Nurhayati, M. (2013). Profitabilitas, likuiditas, dan ukuran perusahaan pengaruhnya terhadap kebijakan dividen dan nilai perusahaan sektor non jasa [Profitability, liquidity, and company size influence on dividend policy and company value in non-service sectors]. Jurnal Keuangan dan Bisnis, 5(2), 144–153.
Rompas, G. (2013). Likuiditas, solvabilitas, dan rentabilitas terhadap nilai perusahaan BUMN yang terdaftar di bursa efek Indonesia [Liquidity, solvency, and profitability to the value of BUMN companies registered on the Indonesia Stock Exchange]. Jurnal EMBA, 1(3), 252–262.
Ross, S., Westerfield, R., & Jordan, B. (2003). Fundamental of corporate finance (3rd ed.). Boston, MA: McGraw-Hill.
Sambora, M., Handayani, S., & Rahayu, S. (2014). Pengaruh leverage dan profitabilitas terhadap nilai perusahaan (studi pada perusahaan food and beverages yang terdaftar di BEI periode tahun 2009-2012) [Effects of leverage and profitability on firms (studies of food and beverages companies listed on the Indonesia Stock Exchange during the period from 2009–2012)]. Jurnal Administrasi Bisnis, 8(1), 1–10. Retrieved from https://media.neliti.com/media/publications/80108-ID-pengaruh-leverage-dan-profitabilitas-ter.pdf
Sari, O. (2013). Pengaruh keputusan investasi, keputusan pendanaan, dan kebijakan dividen terhadap nilai perusahaan [The effects of investment decisions, funding decisions, and dividend policy on firm value]. Management Analysis Journal, 2(2), 1–7.
Sucuahi, W., & Cambarihan, J. (2016). Influence of profitability to the firm value of diversified companies in the Philippines. Journal Accounting and Finance Research, 5(2), 149–153.
Sudarmadji, A., & Sularto, L. (2007). Pengaruh ukuran perusahaan, profitabilitas, leverage, dan tipe kepemilikan perusahaan terhadap luas voluntary disclosure laporan keuangan tahunan [The effects of company size, profitability, leverage, and type of company ownership on the area of voluntary disclosure of annual financial statements]. Proceedings PESAT (Psikologi, Ekonomi, Sastra, Arsitek, dan Sipil), Universitas Gunadarma, 2, A53–A61. Retrieved from https://blog.umy.ac.id/ghea/files/2011/12/ pengaruh-ukuran-perusahaan-profitabilitas-leverage-dan-tipe-kepemilikan-perusahaan-terhadap-luas-voluntary-disclosure-laporan-keuangan-tahunan.pdf
Sugiarto, M (2011). Pengaruh struktur kepemilikan dan kebijakan divbiden terhadap nilai perusahaan dengan kebijakan hutang sebagai intervening. [Influence of ownership structure and dividend policy on company value with debt as an intervening variable.] Jurnal Akuntansi Kontemporer, 3(1), 1–25. Retrieved from https://journal.wima.ac.id/index.php/JAKO/article/view/445
Sugiono, A. (2009). Manajemen keuangan untuk praktisi keuangan [Financial management for financial practitioners]. Jakarta, Indonesia: Grasindo.
Sugiyono (2013). Metode penelitian kuantitatif, kualitatif dan R&D. Bandung, Indonesia: CV Alfabeta.
Usman, R. (2001). Aspek-aspek hukum perbankan di Indonesia [Legal aspects of banking in Indonesia]. Jakarta, Indonesia: Gramedia Pustaka Utama.
Wardjono. (2010). Analisis faktor-faktor yang mempengaruhi price to book value dan implikasinya pada return saham: Studi kasus pada perusahaan manufaktur yang terdaftar di BEI [Analysis of factors that affect price to book value and implications for stock returns: A case study of manufacturing companies listed on the IDX]. Dinamika Keuangan dan Perbankan, 2(1), 83–96.
Weston, F., & Brigham, E. (2005). Dasar-dasar manajemen keuangan Jilid 2 (9th ed.). Jakarta: Erlangga.
Widati, L. (2012). Analisis pengaruh CAMEL terhadap kinerja perusahaan perbankan yang go publik. [Analysis of the influence of CAMEL on the performance of banking companies that go public]. Dinamika Akuntansi, Keuangan dan Perbankan, 1(2), 105–119.
Wijaya, R., Ihsan, R., & Solikhin , A. (2012). Pengaruh rasio CAMEL terhadap return saham pada industri perbankan di Bursa Efek Indonesia (Studi kasus pada perusahaan industri perbankan yang terdaftar di Bursa Efek Indonesia periode 2007-2009) [The effects of the CAMEL ratio on stock returns in the banking industry on the Indonesia Stock Exchange (A case study of banking industry companies listed on the Indonesia Stock Exchange during the period from 2007–2009)]. Jurnal Penelitian Universitas Jambi: Seri Humaniora, 14(1), 01-08. Retrieved from https://online-journal.unja.ac.id/humaniora/ issue/view/122