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The Influence of Leverage, Activity Ratio and Dividend Policy on Company Value with Bank Interest Rates as a Moderating Variable in Banking Sector Companies

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DOI: 10.18535/sshj.v8i11.1454· Pages: 5867-5880· Vol. 8, No. 11, (2024)· Published: November 21, 2024
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Abstract

This study aims to examine the influence of Leverage, activity ratio, and dividend policy on firm value, with the bank interest rate as a moderating variable. The population used in this study consists of banking companies listed on the Indonesia Stock Exchange. The sample was selected using purposive sampling, resulting in a sample of 12 companies. The data were then analyzed using multiple linear regression and Moderated Regression Analysis (MRA) with SPSS software. The results show that Leverage, measured by the Debt to Equity Ratio (DER); activity ratio, measured by Total Asset Turnover (TATO); and dividend policy, measured by the Dividend Payout Ratio (DPR), have a positive and significant impact on firm value, measured by the Price Earnings Ratio (PER). The MRA results indicate that the bank interest rate, measured by the BI-Rate as the moderating variable, does not moderate the effects of Leverage, activity ratio, and dividend policy on firm value.

Keywords

Firm ValueLeverageActivity RatioDividend PolicyBank Interest Rate

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Author details
Djuliandhika Rachmaningtyas
Management Study Program, Faculty of Economics and Business, National Development University “Veteran” East Java
✉ Corresponding Author
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Yuniningsih
Management Study Program, Faculty of Economics and Business, National Development University “Veteran” East Java
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