Determinants of Market Capitalization with Pofitability and Dividend Policy as Intervening Variables of State Owned Banks

Determinants of Market Capitalization with Pofitability and Dividend Policy as Intervening Variables of State Owned Banks

Loan at Risk (LAR), Profitability, Dividend Policy and Market Capitalization

The purpose of this study is to analyze and empirically prove the influence of the company's external and internal factors ofmarket capitalization with profitability and dividend policy asintervening variables of State Owned Banks. The research period of2011-2020, with the sampling technique is saturated sampling, in which all members of the population are used as samples. The analytical tool used is Structural Equation Modeling (SEM) supported by AMOS software. The results of the study show that the market capitalization of State Owned Banks is influenced by profitability, dividend policy, economic growth, BOPOand Loan at Risk (LAR). LAR besides having an effect on market capitalization, also has a direct effect on profitability and dividend policy.It is hoped that the results of this study can provide input for banks in maximizing the steps that must be taken to improve the company's performance and market capitalization.

I Wayan Budi Artha1*, Tri Widyastuti2, Irvandi Gustari3, Zulkifli4, Bambang Purwoko5

https://dinastipub.org/DIJEFA/article/view/1770/1174

Pancasila University

8 March 2023

I Wayan Budi Artha

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