Research Paper
Year: 2021 | Month: March | Volume: 8 | Issue: 3 | Pages: 315-320
Effect of Capital Adequacy Ratio, Non Performing Loan, Growth Opportunity and Capital Structure on Intrinsic Value of Companies in the Banking Sector with Profitability as an Intervening Variable
Mayang Terapulina Purba1, Iskandar Muda2, Rina Br Bukit2
1Postgraduate Students Department of Property and Valuation Management at Universitas Sumatera Utara, Indonesia
2Postgraduate Lecturer Department of Property and Valuation Management at Universitas Sumatera Utara, Indonesia
Corresponding Author: Mayang Terapulina Purba
ABSTRACT
The research objective was to determine the effect of capital adequacy ratio, non performing loan, growth opportunity and capital structure on intrinsic value of companies in the banking sector with profitability as an intervening variable. The population in this study were 44 banking companies listed on the Indonesia Stock Exchange. The research sample consisted of 23 banking companies listed on the IDX for the 2009-2018 period. The method of analysis uses path analysis with AMOS software. The results show that capital adequacy ratio has a positive and insignificant effect on profitability, non performing loan has a negative and significant effect on profitability, growth opportunity has a positive and insignificant effect on profitability, capital structure has a negative and insignificant effect on profitability, capital adequacy ratio has a negative effect and significant on intrinsic value of companies, non performing loan has a negative and significant effect on intrinsic value of companies, growth opportunity has a negative and significant effect on intrinsic value of companies, capital structure has a positive and insignificant effect on intrinsic value of companies, profitability has a positive and significant effect on intrinsic value of companies, profitability is able intervening capital adequacy ratio, non performing loan and growth opportunity on intrinsic value of companies, profitability unable intervening capital structure on intrinsic value of companies.
Keywords: Capital Adequacy Ratio, Non Performing Loan, Growth Opportunity, Capital Structure, Profitability, Intrinsic Value of Companies.
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