The Influence of Capital Structure, Dividend Policy, Operational Efficiency, Profitability, and Firm Size on Firm Value

Abstract

This research is designed to evaluate how firm value—measured through the Price to Book Value (PBV) metric—is driven by capital structure, dividend policy, operational efficiency, profitability, and firm size. To operationalize these independent factors, the study utilizes the Debt to Equity Ratio (DER), Dividend Payout Ratio (DPR), Operating Expenses to Operating Income (BOPO), Return on Assets (ROA), and total assets as the respective proxies. This study uses quantitative methods with panel data regression analysis and secondary data from the financial statements of banks listed on the Indonesia Stock Exchange. The sample size of this study was eight banks classified as KBMI 3 and 4. The results indicate that capital structure, dividend policy, and profitability have a positive effect on firm value, while operational efficiency and firm size have a negative effect. This study recommends that company management should focus on increasing profitability and maintaining operational efficiency and financial policies to enhance firm value.