A Systematic Literature Review: Determinant of Company Value in Financial Companies

Abstract

This research employs the PRISMA methodology to investigate the determinants of company value within financial institutions, guided by specific inclusion criteria. These criteria involve the selection of peer-reviewed English literature focusing on variables affecting company value in financial institutions, utilizing quantitative or mixed research methods. The study conducts an extensive search within the Elsevier (SCOPUS) database, housing a substantial collection of articles related to company values, ultimately narrowing down the selection to 22 articles for in-depth analysis. The results unveil seven pivotal indicators significantly influencing financial company value: Corporate Governance, Dividend Policy, Company Size, Third-Party Funds, Financial Performance, Capital Structure, and Corporate Social Responsibility. These determinants collectively mold investor perceptions and market assessments, with particular emphasis on the crucial roles played by corporate governance and financial performance. In conclusion, this study underlines that these determinants collectively shape a financial company’s value, with Corporate Social Responsibility standing out as a notable factor capable of enhancing market assessments and reducing mispricing. These findings provide valuable insights for investors, financial professionals, and policymakers, facilitating a deeper understanding of the dynamics of financial company valuation within an ever-evolving landscape.