IDEAS home Printed from https://ideas.repec.org/a/epw/ejbmr0/v7y2022i4id51553.html

Determinants of Company Value (PBV) And Their Impact on Share Returns: A Case Study of Stock Price Index in Mining Companies Listed on the Indonesia Stock Exchange (IDX) 2017–2020

Author

Listed:
  • M. Noor Salim

    (Mercu Buana University, Indonesia)

  • Andreas Prasetia

    (Mercu Buana University, Indonesia)

Abstract

The author conducted this research to comprehend and analyze the company's performance which will focus on the financial ratio, they are Total Asset Turnover Ratio (TATO), Debt to Equity Ratio (DER), Current Ratio (CR) which influenced by company value and the impact on Stock Returns (SR). The value of the company in this research is calculated using Price to Book Value (PBV). The research data is taken from companies active on the Indonesia Stock Exchange from 2017 to 2020, especially in the mining sector. This research uses a selected sample of 29 companies with panel data analysis method which is processed using the "Eviews 11" data processing program. The research results show that stock returns (SR) are not influenced by CR, but TATO, DER and PBV have a significant effect on stock returns (SR). TATO, DER, and CR together have a significant effect on SR and also on PBV. The impact on the dependent variable (SR) which is influenced indirectly by the independent variable (CR, DER TATO) is proven to be more dominant than the direct effect.

Suggested Citation

  • M. Noor Salim & Andreas Prasetia, 2022. "Determinants of Company Value (PBV) And Their Impact on Share Returns: A Case Study of Stock Price Index in Mining Companies Listed on the Indonesia Stock Exchange (IDX) 2017–2020," European Journal of Business and Management Research, European Open Science, vol. 7(4), pages 261-269, July.
    • Handle: RePEc:epw:ejbmr0:v:7:y:2022:i:4:id:51553
    DOI: 10.24018/ejbmr.2022.7.4.1553
    as

    Download full text from publisher

    File URL: https://eu-opensci.org/index.php/ejbmr/article/view/51553
    File Function: Abstract page
    Download Restriction: no
    File URL: https://eu-opensci.org/index.php/ejbmr/article/download/51553/7501
    File Function: Full text
    Download Restriction: no
    File URL: https://libkey.io/10.24018/ejbmr.2022.7.4.1553?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:epw:ejbmr0:v:7:y:2022:i:4:id:51553. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Support Team (email available below). General contact details of provider: https://eu-opensci.org/index.php/ejbmr .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.