Evaluating The Measurement of Corporate Value with The Investment Opportunity Set (IOS) Survey in Banking Indonesia


  • Herry Krisnandi Universitas Nasional
  • Asyari Universitas Nasional Jakarta
  • Olivia Yolanda Universitas Nasional Jakarta




Profitability, Liquidity, Capital Structure, Enterprise Value


This study intends to test the company’s value, which is proxied using the investment opportunity set (IOS) with several latent variables: profitability, liquidity and capital structure. The factors that become manifest variables of profitability are ROE and ROI. For LDR and CR liquidity manifest variables. For the Capital Structure variables, namely DPR and CAR, as well as PBV and CAPBVA as indicators of IOS. The survey was conducted at Banking Sector companies. The research sample was conducted on public banks registered on the IDX for 2017-2019, namely 14 National Commercial Banks. The model test designed by the research used SEM PLS. Signalling theory and information asymmetry theory become a parameter for analysing the measurement of investment opportunities in banking companies to strengthen research reasons to examine the factors that influence the movement of IOS. The results of this study indicate that the Profitability proxy, as measured using ROE and ROI, has a significant positive effect on Firm Value (IOS). Liquidity, as measured using LDR and CR, both have a significant positive effect on Firm Value, and Capital Structure which is proxied using DER and CAR, has a significant positive effect on Firm Value.


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How to Cite

Krisnandi, H. ., Asyari, & Yolanda, O. (2023). Evaluating The Measurement of Corporate Value with The Investment Opportunity Set (IOS) Survey in Banking Indonesia. INTERNATIONAL JOURNAL OF ECONOMICS, MANAGEMENT, BUSINESS, AND SOCIAL SCIENCE (IJEMBIS), 3(1), 92–106. https://doi.org/10.59889/ijembis.v3i1.116

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