Factors Affecting Company Value in Sharia Commercial Banks in Indonesia

Sufyati HS

Abstract


This study aims to determine the effect of investment decisions proxied by Capital Expenditure to Book Value Assets (CEP/BVA), funding decisions proxied by Debt-to-Equity Ratio (DER), and profitability as proxied by Return on Equity (ROE) to value companies that are proxied by Earnings Per Share (EPS) at Islamic commercial banks for the 2015-2020 period. In this study, the data used are secondary data by analyzing 5 (five) samples of financial statements of Islamic commercial banks using purposive sampling method in sampling. The results of this study, it was found that Capital Expenditure to Book Value Assets (CEP/BVA) had a negative and insignificant effect on Earnings Per Share (EPS). While the Debt-to-Equity Ratio (DER) has a positive and significant effect on Earnings Per Share (EPS).


Keywords


Investment Decision, Funding Decision, Profitability, Company Value

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DOI: https://doi.org/10.33258/birci.v5i3.5908

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This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.