The Effect of Current Ratio, Debt to Asset Ratio, and Return on Assets on Price to Book Value in Non-Bank Companies in the LQ45 Index Listed on the Indonesian Stock Exchange from 2019 to 2023
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Key Points
Current Ratio, Debt to Asset Ratio, and Return on Assets show no significant individual impact on Price to Book Value, but together they significantly influence it.
The study utilized panel data regression on 35 non-bank companies, covering 175 observations during 2019–2023 to assess relationships.
Analysis employed the Fixed Effect Model and included classical assumption testing alongside multiple hypothesis tests.
Findings suggest that while financial ratios play a role, other factors also significantly affect Price to Book Value, with only 22.01% explained variance.