Analysis of the Effect of Financial Ratios and Company Size on Market Capitalization of Banks Listed on The IDX (2017-2021)
Corresponding Author(s) : Pita Kurniasari
Prosiding International Conference on Sustainable Innovation (ICoSI),
Vol. 3 No. 2 (2023)
Abstract
Introduction – Market capitalization is an indicator that can reflect the value of a company in the stock market and can be used as a benchmark to compare companies in the same industry and indicates the level of investor confidence in the company's future growth potential and financial health. Purpose – This study aimed to determine the effect of financial ratios and company size on the banking market capitalization of Indonesian banks listed on the IDX in 2017-20. Methodology/Approach – Using a purposive sampling method, this study used 47 banking companies listed on the IDX in 2017-2021. this quantitative research uses secondary data in the form of annual financial reports published by the company. the hypothesis is proven using the SPSS 26 statistical analysis program. Findings – Using a purposive sampling method, this study used 47 banking companies listed on the IDX in 2017-2021. this quantitative research uses secondary data in the form of annual financial reports published by the company. the hypothesis is proven using the SPSS 26 statistical analysis program. Originality/ Value/ Implication – state of this study contributes to the analysis of financial ratios and company size on company capitalization to assist investors in choosing the right issuer for investing in the capital market.
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