The Effect of Risk Profile (Credit, Operational, Liquidity and Market Risk) on the Firm Value of Banking Sector Companies Listed on the Indonesia Stock Exchange in 2017-2021

Authors : Alfiyah; Dionysia Kowanda

Volume/Issue : Volume 8 - 2023, Issue 2 - February

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Firm Value is an indicator of investor perception of company performance in the current conditions and in the future. Company value isthe market value that is able to provide maximum prosperity for shareholders if the company's share price increases. The value of the company is influenced by several factors, namely the Risk Profile and its components consisting of Market Risk, Credit Risk, Liquidity Risk, and Operational Risk. This study aims to determine and test the effect of the risk profile and its components consisting of Market Risk, Credit Risk, Liquidity Risk, and Operational Risk on company value. The research was conducted on the Banking Industry listed on the Indonesia Stock Exchange (IDX) for the period 2017- 2021. The population was recorded from 2017 until 2021 totaling 81 companies. The selection of samples in this study used the purposive sampling method. In this study uses descriptive analysis methods, using classical assumption tests, multiple regression analysis, partial t, tests, simultaneous tests, and coefficient of determination tests with SPSS version 22. The results of this study show that credit risk (NPL) and operational risk (BOPO) have a significant effect on company value. However, liquidity risk (LDR) and market risk (NIM) have no effect on the value of the company

Keywords : Risk Profile, NIM, BOPO, LDR, and Company Value.


Paper Submission Last Date
29 - February - 2024

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