Performance, Diversification, Ownership, Managerial Qualification, and Firm Value of Banking Companies Listed in Indonesia Stock Exchange

Abstract

This research aims to analyze financial ratios influencing Firm value, namely: Tobin Q value. The financial ratios include Return on Assets (RoA), Debt to Total Asset (DTA), Diversification, Managerial Ownership, Institutional Ownership, and Managerial Qualification and Firm Risk (Non-Performing Loan / NPL). The samples used in this research were seventeen Private Banking Companies and four Government Banking Companies observed by using cross-section method in the research period of 2009 – 2014. Data analysis techniques used in this research were the double linier regressions, namely: F test, T test, and Independent T Test (Compare Mean Test). The result of this research is adjusted with R Square = 42.2 %, meaning that the independence variable influences or describes the effect of 42.2% on the Firm value (Tobin Q), and 57.8% was influenced by other variables. The simultaneous test indicates that the independent variable has an effect on the Firm value as indicated by the signifance value = 0000. The partial test result shows that the debt variable to total asset (DTA), diversification, and the managerial qualification have an effect on the Firm value. Meanwhile, the Return on Asset (RoA), the Managerial Ownership, the Institutional Ownership, and the NPL do not have any effect on the Firm value related to the Tobin Q value. There is a difference between state-owned banks and private banks listed in the Indonesia Stock Exchange (IDX).

Keywords: Return on Asset, debt to total asset, diversification, managerial ownership, institution ownership, managerial qualification, NPL and the Firm value.