The Influence of Leverage, Activity Ratio and Dividend Policy on Company Value with Bank Interest Rates as a Moderating Variable in Banking Sector Companies
Abstract
This study aims to examine the influence of Leverage, activity ratio, and dividend policy on firm value, with the bank interest rate as a moderating variable. The population used in this study consists of banking companies listed on the Indonesia Stock Exchange. The sample was selected using purposive sampling, resulting in a sample of 12 companies. The data were then analyzed using multiple linear regression and Moderated Regression Analysis (MRA) with SPSS software. The results show that Leverage, measured by the Debt to Equity Ratio (DER); activity ratio, measured by Total Asset Turnover (TATO); and dividend policy, measured by the Dividend Payout Ratio (DPR), have a positive and significant impact on firm value, measured by the Price Earnings Ratio (PER). The MRA results indicate that the bank interest rate, measured by the BI-Rate as the moderating variable, does not moderate the effects of Leverage, activity ratio, and dividend policy on firm value.
References
1. Agustin, L., & Anwar, M. (2022). The Influence of Investment Decisions, Policy Dividends and Liquidity On Company Value In Property And Real Estate Sub-Sector Companies Listed On The IDX. Journal Scientific Management , Economics, & Accounting (MEA) , 6 (2), 1251-1267.
2. Al- Slehat , ZAF (2019). Impact of Financial Leverage , Size and Assets Structure on Firm Value: Evidence from Industrial Sector, Jordan. International Business Research , 13 (1), 109. https://doi.org/10.5539/ibr.v13n1p109
3. Amalutstsani , WY, & Anwar, M. (2021). Corporate Governance, Risk , and Company Value in Banking Sector Companies In Indonesia. Journal Knowledge Management , 11 (1), 1. https://doi.org/10.32502/jimn.v11i1.3514
4. Andriza , R., & Yusra, I. (2019). The Influence ownership managerial and policy dividend to Investor prosperity and value companies listed on the LQ45 index .
5. Aryawati , NPA, Harahap , TK, Yanti, NNSA, Mahardika, IMNO, Widiniarsih , DM, Ahmad, MIS, ... & Amali, LM (2023). Management finance . Tahta Media Publisher .
6. Astawinetu , ED, Handini , S., & Istiono , I. (2020). Analysis Of The Effect Of Funding Decissions , Macroeconomic, And Profitability On The Value Of Food And Beverages Companies In The Indonesia Stock Exchange Period 2015-2018. Expectations : Journal Business and Management , 4(1), 35–44. https://doi.org/10.25139/ekt.v4i1.2659
7. Fakhrudinsyah , V., & Takarini , N. (2022). DIVIDEND POLICY ANALYSIS IN MANUFACTURING COMPANIES LISTED ON THE INDONESIA STOCK EXCHANGE (IDX). ECOBISMA (JOURNAL OF ECONOMICS, BUSINESS AND MANAGEMENT) , 9 (1), 1-11.
8. Fatmawati , N., & Takarini , N. (2022). Analysis of Factors Affecting Policy Debt of Coal Subsector Companies Listed on the Indonesia Stock Exchange . Ekonomis : Journal of Economics and Business , 6 (2), 518-525. Herawati, M. (2021). Analysis Changes in the Rupiah Exchange Rate Due to Improvement Inflation , SBI Interest Rate and Economic Growth (Study on Bank Indonesia Period 2008 – 2017). ECONOMIC JOURNAL, 23(1), 20. https://doi.org/10.37721/je.v23i1.759
9. Jannata , SN, & Pertiwi, TK (2022). Analysis of Company Value in the Consumer Goods Industry Sector, Food and Beverage Sub-Sector on the Indonesia Stock Exchange . El -Mal: Journal of Islamic Economics & Business Studies , 3 (4), 739–754. https://doi.org/10.47467/elmal.v3i4.1074
10. Jihadi, M., Vilantika , E., Hashemi, SM, Arifin, Z., Bachtiar, Y., & Sholichah , F. (2021). The Effect of Liquidity, Leverage , and Profitability on Firm Value: Empirical Evidence from Indonesia. The Journal of Asian Finance, Economics and Business , 8 (3), 423–431. https://doi.org/10.13106/JAFEB.2021.VOL8.NO3.0423
11. Husna, R., & Rahayu, Y. (2020). Influence growth company , policy dividends , and profitability to mark company . Journal Accounting Science and Research (JIRA) , 9 (1).
12. Khasana , U. (2015). The Influence of Investment Decisions , Decisions funding , and policies dividend Against Company Value with Interest Rate flower as Moderating Variable , Accounting , Faculty of Economics, Muhammadiyah University of Gresik.
13. Margono, F.P., & Gantino , R. (2021). Influence of firm size, Leverage , profitability, and dividend policy on firm value of companies in Indonesia Stock Exchange. Copernican Journal of Finance & Accounting, 10(2), 45–61. https://doi.org/10.12775/cjfa.2021.007
14. Merinda, P., & Pertiwi, TK (2019). Analysis of Company Value in Transportation Companies on the Indonesia Stock Exchange. Potential Development of Digital Economy in Indonesia , 55-63
15. Nursalim , AB, Rate, PV, & Baramuli , DN (2021). The Influence Inflation , Profitability , Solvency and Activity Ratio On the Value of Manufacturing Sector Companies Period 2015-2018 .
16. Noviyanti , D., & Ruslim , H. (2021). The Influence Capital Structure , Profitability , Activities On Company Value. Journal Management and Entrepreneurship , 3 (1), 34-41.
17. Pradani , AP, Nur, DI, & Wikartika , I. (2021). Financial Performance Analysis On Wholesale Company Value. Revitalization, 10(1), 10. https://doi.org/10.32503/revitalisasi.v10i1.1612 .
18. Prihatin , H. (2021). THE EFFECT OF STOCK RETURN, LEVERAGE AND LIQUIDITY ON COMPANY VALUE WITH DIVIDEND POLICY AS AN INTERVENING VARIABLE IN MANUFACTURING COMPANIES LISTED ON THE IDX IN THE 2015-2019 PERIOD (Doctoral dissertation, Universitas Putra Indonesia YPTK).
19. Rizki , M., & Takarini , N. (2021). Analysis of Company Value in the Property and Real Estate Subsector Listed on the Indonesia Stock Exchange ( IDX). Journal of Social Economics and Politics (JSEP) , 2 (2).
20. Sari, DM, Arfiani , M., & Amanda, P. (2020). Analysis Liquidity , Profitability and Solvency On Banking Company Stock Prices Indexed LQ45. Journal Accounting Economics Research (JENSI), 4(2), 180-190.
21. Sekarsari , I., & Yuniningsih , Y. (2023). Performance Analysis of Conventional Commercial Banks Listed on the Indonesia Stock Exchange . Oikos: Journal of Economics and Economic Education, 7(1), 85–95. https://doi.org/10.23969/oikos.v7i1.6099
22. Setiawan, AF, Suwaidi, RA, No, JRM, Anyar , G., Anyar , KG, & SBY, K. (2022). The Influence ratio liquidity , activity , and leverage against profitability with firm size as variable moderation . BRILIANT: Research and Conceptual Journal , 7 (1), 750-761.
23. Setiawan, DE, & Rahmawati, IY (2020). The Effect of Liquidity, Profitability, Leverage on Corporate Value with Dividend Policy and BI Rate as Moderated Variables. Economics and Business Solutions Journal, 4(1), 1.
24. Setiawanta , Y., & Hakim, MA (2019). Is signal performance finance Still confirmed ? : Empirical study institution finance at PT. BEI. Journal of Economics and Business , 22(2), 289–312.
25. SUGIANTO, I. (2022). ANALYSIS OF THE EFFECT OF BI RATE, EXCHANGE RATE, GDP GROWTH, INFLATION, AND JIBOR ON NON PERFORMING LOANS OF CONVENTIONAL COMMERCIAL BANKS IN INDONESIA (Doctoral dissertation, UPN "VETERAN'JAWA TIMUR).
26. Susanti, R. (2023). THE EFFECT OF FINANCIAL RATIOS ON STOCK RETURNS WITH BANK INTEREST RATES AS A MODERATING VARIABLE IN PROPERTY AND REAL ESTATE COMPANIES ON THE INDONESIA STOCK EXCHANGE ( Period 2017-2021 ). Cahaya Mandalika Journal ISSN 2721-4796 (online) , 4 (3), 1311-1331.
27. Susanti, W., & Takarini , N. (2022). The Influence Liquidity , Profitability , Leverage, and Activity in Predicting Financial Distress in Retail Trade Subsector Companies Listed on the IDX. Ekonomis : Journal of Economics and Business , 6 (2), 488-497.
28. Susanti, R., & Pertiwi, IFP (2019). The role of ISR disclosure as moderator of the relationship between profitability and Leverage towards corporate value. Indonesian Journal of Islamic Economics Research, 1(2), 58–66. https://doi.org/10.18326/ijier.v1i2.3044
29. Taba, U., & Tato, M. S. (2022). Influence Ownership Managerial and Policy Dividend On Company Value (Study on the Food and Beverage Sub-Sector Industry Listed on the IDX). 1 (2).
30. Takarini , N., & Dewi, ODC (2023). Analysis Ratio Finance on Stock Prices of Pharmaceutical Companies Listed on the Indonesia Stock Exchange . Ekonomis : Journal of Economics and Business , 7 (1), 234-239.
31. Yuniningsih , Y., Hasna, NA, Wajdi, MBN, & Widodo, S. (2018). Financial performance measurement of with signaling theory review on automotive companies listed in Indonesia stock exchange. IJEBD (International Journal Of Entrepreneurship And Business Development) , 1 (2), 167-177.
32. Yuniningsih , Y., Pertiwi, TK, & Purwanto, E. (2019). Fundamental factors of financial management in determining company values. Management Science Letters , 205–216.
https://doi.org/10.5267/j.msl.2018.12.00
2. Al- Slehat , ZAF (2019). Impact of Financial Leverage , Size and Assets Structure on Firm Value: Evidence from Industrial Sector, Jordan. International Business Research , 13 (1), 109. https://doi.org/10.5539/ibr.v13n1p109
3. Amalutstsani , WY, & Anwar, M. (2021). Corporate Governance, Risk , and Company Value in Banking Sector Companies In Indonesia. Journal Knowledge Management , 11 (1), 1. https://doi.org/10.32502/jimn.v11i1.3514
4. Andriza , R., & Yusra, I. (2019). The Influence ownership managerial and policy dividend to Investor prosperity and value companies listed on the LQ45 index .
5. Aryawati , NPA, Harahap , TK, Yanti, NNSA, Mahardika, IMNO, Widiniarsih , DM, Ahmad, MIS, ... & Amali, LM (2023). Management finance . Tahta Media Publisher .
6. Astawinetu , ED, Handini , S., & Istiono , I. (2020). Analysis Of The Effect Of Funding Decissions , Macroeconomic, And Profitability On The Value Of Food And Beverages Companies In The Indonesia Stock Exchange Period 2015-2018. Expectations : Journal Business and Management , 4(1), 35–44. https://doi.org/10.25139/ekt.v4i1.2659
7. Fakhrudinsyah , V., & Takarini , N. (2022). DIVIDEND POLICY ANALYSIS IN MANUFACTURING COMPANIES LISTED ON THE INDONESIA STOCK EXCHANGE (IDX). ECOBISMA (JOURNAL OF ECONOMICS, BUSINESS AND MANAGEMENT) , 9 (1), 1-11.
8. Fatmawati , N., & Takarini , N. (2022). Analysis of Factors Affecting Policy Debt of Coal Subsector Companies Listed on the Indonesia Stock Exchange . Ekonomis : Journal of Economics and Business , 6 (2), 518-525. Herawati, M. (2021). Analysis Changes in the Rupiah Exchange Rate Due to Improvement Inflation , SBI Interest Rate and Economic Growth (Study on Bank Indonesia Period 2008 – 2017). ECONOMIC JOURNAL, 23(1), 20. https://doi.org/10.37721/je.v23i1.759
9. Jannata , SN, & Pertiwi, TK (2022). Analysis of Company Value in the Consumer Goods Industry Sector, Food and Beverage Sub-Sector on the Indonesia Stock Exchange . El -Mal: Journal of Islamic Economics & Business Studies , 3 (4), 739–754. https://doi.org/10.47467/elmal.v3i4.1074
10. Jihadi, M., Vilantika , E., Hashemi, SM, Arifin, Z., Bachtiar, Y., & Sholichah , F. (2021). The Effect of Liquidity, Leverage , and Profitability on Firm Value: Empirical Evidence from Indonesia. The Journal of Asian Finance, Economics and Business , 8 (3), 423–431. https://doi.org/10.13106/JAFEB.2021.VOL8.NO3.0423
11. Husna, R., & Rahayu, Y. (2020). Influence growth company , policy dividends , and profitability to mark company . Journal Accounting Science and Research (JIRA) , 9 (1).
12. Khasana , U. (2015). The Influence of Investment Decisions , Decisions funding , and policies dividend Against Company Value with Interest Rate flower as Moderating Variable , Accounting , Faculty of Economics, Muhammadiyah University of Gresik.
13. Margono, F.P., & Gantino , R. (2021). Influence of firm size, Leverage , profitability, and dividend policy on firm value of companies in Indonesia Stock Exchange. Copernican Journal of Finance & Accounting, 10(2), 45–61. https://doi.org/10.12775/cjfa.2021.007
14. Merinda, P., & Pertiwi, TK (2019). Analysis of Company Value in Transportation Companies on the Indonesia Stock Exchange. Potential Development of Digital Economy in Indonesia , 55-63
15. Nursalim , AB, Rate, PV, & Baramuli , DN (2021). The Influence Inflation , Profitability , Solvency and Activity Ratio On the Value of Manufacturing Sector Companies Period 2015-2018 .
16. Noviyanti , D., & Ruslim , H. (2021). The Influence Capital Structure , Profitability , Activities On Company Value. Journal Management and Entrepreneurship , 3 (1), 34-41.
17. Pradani , AP, Nur, DI, & Wikartika , I. (2021). Financial Performance Analysis On Wholesale Company Value. Revitalization, 10(1), 10. https://doi.org/10.32503/revitalisasi.v10i1.1612 .
18. Prihatin , H. (2021). THE EFFECT OF STOCK RETURN, LEVERAGE AND LIQUIDITY ON COMPANY VALUE WITH DIVIDEND POLICY AS AN INTERVENING VARIABLE IN MANUFACTURING COMPANIES LISTED ON THE IDX IN THE 2015-2019 PERIOD (Doctoral dissertation, Universitas Putra Indonesia YPTK).
19. Rizki , M., & Takarini , N. (2021). Analysis of Company Value in the Property and Real Estate Subsector Listed on the Indonesia Stock Exchange ( IDX). Journal of Social Economics and Politics (JSEP) , 2 (2).
20. Sari, DM, Arfiani , M., & Amanda, P. (2020). Analysis Liquidity , Profitability and Solvency On Banking Company Stock Prices Indexed LQ45. Journal Accounting Economics Research (JENSI), 4(2), 180-190.
21. Sekarsari , I., & Yuniningsih , Y. (2023). Performance Analysis of Conventional Commercial Banks Listed on the Indonesia Stock Exchange . Oikos: Journal of Economics and Economic Education, 7(1), 85–95. https://doi.org/10.23969/oikos.v7i1.6099
22. Setiawan, AF, Suwaidi, RA, No, JRM, Anyar , G., Anyar , KG, & SBY, K. (2022). The Influence ratio liquidity , activity , and leverage against profitability with firm size as variable moderation . BRILIANT: Research and Conceptual Journal , 7 (1), 750-761.
23. Setiawan, DE, & Rahmawati, IY (2020). The Effect of Liquidity, Profitability, Leverage on Corporate Value with Dividend Policy and BI Rate as Moderated Variables. Economics and Business Solutions Journal, 4(1), 1.
24. Setiawanta , Y., & Hakim, MA (2019). Is signal performance finance Still confirmed ? : Empirical study institution finance at PT. BEI. Journal of Economics and Business , 22(2), 289–312.
25. SUGIANTO, I. (2022). ANALYSIS OF THE EFFECT OF BI RATE, EXCHANGE RATE, GDP GROWTH, INFLATION, AND JIBOR ON NON PERFORMING LOANS OF CONVENTIONAL COMMERCIAL BANKS IN INDONESIA (Doctoral dissertation, UPN "VETERAN'JAWA TIMUR).
26. Susanti, R. (2023). THE EFFECT OF FINANCIAL RATIOS ON STOCK RETURNS WITH BANK INTEREST RATES AS A MODERATING VARIABLE IN PROPERTY AND REAL ESTATE COMPANIES ON THE INDONESIA STOCK EXCHANGE ( Period 2017-2021 ). Cahaya Mandalika Journal ISSN 2721-4796 (online) , 4 (3), 1311-1331.
27. Susanti, W., & Takarini , N. (2022). The Influence Liquidity , Profitability , Leverage, and Activity in Predicting Financial Distress in Retail Trade Subsector Companies Listed on the IDX. Ekonomis : Journal of Economics and Business , 6 (2), 488-497.
28. Susanti, R., & Pertiwi, IFP (2019). The role of ISR disclosure as moderator of the relationship between profitability and Leverage towards corporate value. Indonesian Journal of Islamic Economics Research, 1(2), 58–66. https://doi.org/10.18326/ijier.v1i2.3044
29. Taba, U., & Tato, M. S. (2022). Influence Ownership Managerial and Policy Dividend On Company Value (Study on the Food and Beverage Sub-Sector Industry Listed on the IDX). 1 (2).
30. Takarini , N., & Dewi, ODC (2023). Analysis Ratio Finance on Stock Prices of Pharmaceutical Companies Listed on the Indonesia Stock Exchange . Ekonomis : Journal of Economics and Business , 7 (1), 234-239.
31. Yuniningsih , Y., Hasna, NA, Wajdi, MBN, & Widodo, S. (2018). Financial performance measurement of with signaling theory review on automotive companies listed in Indonesia stock exchange. IJEBD (International Journal Of Entrepreneurship And Business Development) , 1 (2), 167-177.
32. Yuniningsih , Y., Pertiwi, TK, & Purwanto, E. (2019). Fundamental factors of financial management in determining company values. Management Science Letters , 205–216.
https://doi.org/10.5267/j.msl.2018.12.00
Authors
[1]
“The Influence of Leverage, Activity Ratio and Dividend Policy on Company Value with Bank Interest Rates as a Moderating Variable in Banking Sector Companies”, Soc. sci. humanities j., vol. 8, no. 11, pp. 5867–5880, Nov. 2024, doi: 10.18535/sshj.v8i11.1454.
This work is licensed under a Creative Commons Attribution 4.0 International License.