Firm Value Determinants and Their Implications for Stock Prices: Evidence from Main Board Banks in Indonesia

Anum Nuryani; Azhar Affandi; Liza Laila Nurwulan; Jaja Suteja; Masno Marjohan

doi:10.59890/ijsas.v4i5.440

Authors

Anum Nuryani Universitas Pasundan
Azhar Affandi Universitas Pasundan
Liza Laila Nurwulan Universitas Pasundan
Jaja Suteja Universitas Pasundan
Masno Marjohan Universitas Pamulang

DOI:

https://doi.org/10.59890/ijsas.v4i5.440

Keywords:

CAR, ROA, firm size, USD exchange rate, NPL, DAR, Tobin’s Q, stock price

Abstract

This study aims to analyze the effect of capital adequacy (Capital Adequacy Ratio/CAR), profitability (Return on Assets/ROA), firm size (assets), and market risk (USD exchange rate) on firm value (Tobin’s Q) and their impact on stock prices of banks listed on the Main Board of the Indonesia Stock Exchange during the 2020–2024 period. This study was analyzed using panel data regression involved model selection testing, classical assumption testing, hypothesis testing, and model feasibility testing. The results show that simultaneously, CAR, ROA, firm size, and the USD exchange rate have a significant effect on firm value. Partially, CAR and ROA have a positive and significant effect on firm value, firm size has a positive but insignificant effect, while the USD exchange rate has a negative and significant effect on firm value. Furthermore, firm value has a positive and significant effect on stock prices.

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