Keywords
Capital Adequacy
Dividend Policy
Islamic Social Reporting
Firm Value
How to Cite
Abstract
This study aims to determine the effect of profitability, capital adequacy, dividend policy, and Islamic Social Reporting on firm value. The case study used is a banking sector company listed on the Asia Sustainability Reporting Rating and the Indonesian Sharia Stock Index during the 2018-2023 period. Firm value describes a state of the company as a form of trust from stakeholders to the company after going through a series of activities over a long period of time. Measuring company value is important because investor interest in a company is emphasized on the value of the company. This research is quantitative in nature using secondary data obtained from the official website of each banking sector company. The sampling technique used uses purposive sampling to filter the population to fit the predetermined criteria. This study used 31 samples from banking sector companies. Data analysis using the IBM SPSS 26 application by performing multiple regression on the model under study. The results revealed that profitability and dividend policy have a positive and significant effect on firm value. Meanwhile, capital adequacy shows a significant negative effect on firm value. In contrast to the assumptions that have been built at the beginning that Islamic Social Reporting is not proven to have an effect on firm value.
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