Intrinsic Value Equity Determinants through Banking Profitability in Indonesia Stock Exchange

Syally Dwi Andrina Nst, Fachrudin, Isfenti Sadalia

2018

Abstract

The purpose of this research was to find out and analyze the influence of Capital Adequacy Ratio, Non-perfoming Loans and Net Interest Margin on the intrinsic value of equity with profitability as an intervening variable in banking sector companies in Indonesia Stock Exchange. The intrinsic value of this equity was the net present value of the projected Free Cash Flow to Equity (FCFE). The population was selected by the target population with 30 samples of companies. Hypothesis testing technique using path analysis using SPSS at 5% alpha value. The results of this study indicate that 1) the CAR has a negative and significant effect on profitability, 2) NPL has a negative and significant effect on profitability, 3) NIM has positive and significant effect on profitability, 4) CAR has positive and insignificant effect on equity intrinsic value

Paper Citation

in Harvard Style

Andrina Nst S., Fachrudin. and Sadalia I. (2018). Intrinsic Value Equity Determinants through Banking Profitability in Indonesia Stock Exchange. In Proceedings of the International Conference on Natural Resources and Sustainable Development - Volume 1: ICNRSD, ISBN 978-989-758-543-2, pages 422-427. DOI: 10.5220/0009904000002480

in Bibtex Style

@conference{icnrsd18,
author={Syally Dwi Andrina Nst and Fachrudin and Isfenti Sadalia},
title={Intrinsic Value Equity Determinants through Banking Profitability in Indonesia Stock Exchange},
booktitle={Proceedings of the International Conference on Natural Resources and Sustainable Development - Volume 1: ICNRSD,},
year={2018},
pages={422-427},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0009904000002480},
isbn={978-989-758-543-2},
}

in EndNote Style

TY - CONF

JO - Proceedings of the International Conference on Natural Resources and Sustainable Development - Volume 1: ICNRSD,
TI - Intrinsic Value Equity Determinants through Banking Profitability in Indonesia Stock Exchange
SN - 978-989-758-543-2
AU - Andrina Nst S.
AU - Fachrudin.
AU - Sadalia I.
PY - 2018
SP - 422
EP - 427
DO - 10.5220/0009904000002480