ARTICLE
TITLE

Effect of Earning Assets, Liquidity, and Equity on Profitability and Company Value at State-Owned Banks Listed on the Indonesia Stock Exchange 2009-2018

SUMMARY

The research was conducted at state-owned banks listed on the Indonesia Stock Exchange for the period 2009-2018. The focus of the study is the firm value (Y2) with the predictor variable earning asset quality (X1), liquidity (X2), and equity (X3) with the intervening variable profitability (Y1). Used secondary data obtained from documentation by sample companies and also the Indonesian Financial Services Authority. The data analysis technique used path analysis. The purpose of this study was to examine the direct effects of X1, X2, X3 on Y1 and Y2 and to examine the indirect effects of X1, X2, X3 on Y2 through Y1. The results showed that X1, X2, X3 had a direct and significant positive effect on Y1, and X1, X3, Y1 had a significant positive effect directly on Y2. While X2 has no significant effect on Y2, but still has a positive direction. This is due to the liquidity risk borne by the bank and affects the net profit after tax. For the indirect effect, the results obtained by X1, X2, X3 have no significant effect on Y2 through Y1. The use of capital structures with high costs weakens the indirect relationship of each variable.

 Articles related

Alvina Damayanti, Maretha Ika Prajawati    

The purpose of this study is to understand the effect of earning power, managerial ownership on earnings management, with investment decisions as a moderator. Telecommunications companies listed on the Indonesia Stock Exchange between 2018 and 2021 are t... see more


Mohd. Nawi Purba, Jofana Thalia, Selvica Daniela, Selly Selly    

This study aims to test hypotheses and examine the impact of Price Earning Ratio, Earnings Per Share, Debt to Equity Ratio, and Current Ratio on the stock prices of Mining Companies Listed on the IDX in 2018–2021. This study adopted a quantitative method... see more


Imam Hidayat, Rika Dwi Utami    

This study aims to determine the effect of investment opportunity set, institutional ownership, and company size on earning quality. Of the 52 companies in the consumption sector, there are 22 sample companies and will be analyzed from 2018 to 2020. This... see more

Revista: AJAR

Diah Permata Sari,Hari Setiyawati    

This study explores the effect of corporate governance mechanisms and disclosure of corporate social responsibility on earnings quality and the effect on stock returns. The mining sector research analysis is indexed on the Indonesia Stock Exchange for th... see more


Surinastiti Eka Putri, Rosinta Ria Panggabean    

Capital market serves as an alternative financing-wise and as a means investment-wise. Relevance of accounting information comes out as profound to investors as can be observed within the financial statements of a company. The aim of this study was to fi... see more