Abstract

Company tends to achieve higher company’s value by improving prosperity of shareholder. Company’s values are influenced by external factors and internal factors. Internal factors that influence firm value are the company’s financial ratios, including NPL, operating cost, operating income (BOPO), LDR, and ROA. This study aims to empirically examine the effect of NPL, BOPO, LDR, and ROA on firm value of the banking sub-sector companies listed on The Indonesia Stock Exchange Period of 2019-2021. The sample determination method used in this study is a non-probability sampling method, namely saturated sampling. The number of observations with 43 companies towards study period of 3 years was 129. Data was analyzed using multiple linear regression. Results indicate that NPL with LDR has significant negative effects; meanwhile, operating cost on operating income and return on asset has no significant impact on company value.

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