The Effect of Banking Financial Ratios on Firm Value (An Empirical Study on Conventional Banking Companies Listed on The Indonesia Stock Exchange for The 2018-2022 Period)

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This empirical study reveals significant effects of financial ratios on firm value in banking, indicating vital insights for investors.

Return on equity positively influences firm value, supporting the importance of profitability metrics.
Capital adequacy ratio has a significant positive effect on firm value, underscoring the need for solid capital structures.
Loan to deposit ratio negatively impacts firm value, suggesting that high debt levels could deter investors.
Multiple regression analysis indicates that combined financial ratios significantly affect firm value.

Jonardy et al. (2024) studied this question.

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