A Analysis of Factors Affecting Stock Valuation Based on Price Earning Ratio
Abstract
This study analyzes the factors that influence the Price Earnings Ratio of the 20 largest Islamic banks in the world from 11 different countries during the period 2019-2023. Using the panel data regression method, this study investigates the effect of Return on Equity, Return on Assets, Price to Book Value, Dividend Payout Ratio, Debt to Equity Ratio, and Bank Size on PER. The results show that PBV and DPR have a significant positive effect on PER, while ROE, ROA, DER, and SIZE do not show a significant effect. These findings highlight the importance of book value and dividend policy in investors' assessment of Islamic banks, as well as revealing the unique complexities in Islamic bank valuation that are not always in line with conventional finance theory. This study provides valuable insights for investors, analysts, and policymakers in understanding the dynamics of Islamic bank valuation in the global market, and emphasizes the need to consider non-financial factors such as sharia compliance in investment analysis.
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Alam, N., Binti Zainuddin, S. S., & Rizvi, S. A. R. (2019). Ramifications of varying banking regulations on performance of Islamic Banks. Borsa Istanbul Review, 19(1), 49–64. https://doi.org/10.1016/j.bir.2018.05.005
Almonifi, Y. S. A., & Bhosle, V. K. (2023). Impact of banking performance indicators on share price of Islamic banks listed on GCC stock exchanges. Jurnal Ekonomi & Keuangan Islam, 9(2), 263–276. https://doi.org/10.20885/jeki.vol9.iss2.art8
Dwianto, A., Setiawati, E., Triyono, T., Witono, B., . Z., & Ahyani, F. (2024). Do Environmental Accounting and the Performance of the Banks Contribute to the Value of the Islamic Banks? SSRN Electronic Journal, May. https://doi.org/10.2139/ssrn.4747846
Fazri, M., Alwi Paluseri, A. R., Oktarina, A., Imron, D. K., Nababan, F. E., Pertiwi, C., Roidatua, M. R., & Aryani, Y. (2022). Does Village Fund Have an Impact Toward Economic Growth? Economics Development Analysis Journal, 11(4), 394–404. https://doi.org/10.15294/edaj.v11i4.60240
Frestiva, I. J., & Sholahuddin, M. (2024). Analysis Of Islamic Banking Financial Performance Before And After The Merger. EKOMBIS REVIEW: Jurnal Ilmiah Ekonomi Dan Bisnis, 12(1), 539–548. https://doi.org/10.37676/ekombis.v12i1.4877
Khotmi, H., Savira, A., & Fachroz. (2023). The Role of PBV As MODERATION OF CAGR, ROE, AND DER ON SHARE PRICE (Case of Islamic Banking Sector Companies Listed on the IDX). Al-Infaq: Jurnal Ekonomi Islam, 14(2), 403–420.
Masruroh, S. A. (2022). The Influence of Asset Growth, Profitability, and Firm Size on the Capital Structure of Islamic Banking in the World Period 2011-2020. Journal of Economics, Finance And Management Studies, 05(06), 1594–1603. https://doi.org/10.47191/jefms/v5-i6-11
Mubarok, F., Nurhasanah, A., & Fajarwati, N. D. (2024). Assessing Islamic Banking Equity : A Synthesis of Financial Ratios and Economic Conditions. 8(2), 191–215.
Mubarok, F., Wibowo, M., & Latif, S. D. H. (2024). Safeguarding Stability and Enhancing Profitability: The Case of Islamic Banking in Indonesia. International Journal of Islamic Economics and Finance (IJIEF), 7(1), 455–472. https://doi.org/10.18196/ijief.v7i1.20537
Nasir, N., & Sukmawati, S. (2023). Analysis of Research Data Quantitative and Qualitative. Edumaspul: Jurnal Pendidikan, 7(1), 368–373.
Putri, A., Setiyowati, S., & Tyasari, I. (2023). When financial performance of Islamic banks matters: The moderating effect of islamic social reporting. Jurnal Akuntansi Dan Keuangan Islam, 11(2), 137–168. https://doi.org/10.35836/jakis.v11i2.448
Ramdani, O., & Kamal, M. (2023). Corporate Governance and Shariah Non-compliance Risk: The Case of Islamic Banks in Indonesia. Jurnal Akuntansi Dan Keuangan Islam, 11(1), 49–79. https://doi.org/10.35836/jakis.v11i1.370
Segarawasesa, F. S. (2021). Analysis of factors affecting sharia compliance levels in sharia banks in Indonesia. Asian Journal of Islamic Management (AJIM), 3(1), 56–66. https://doi.org/10.20885/ajim.vol3.iss1.art6
Wardana, G. K., & Noer Aisyah Barlian. (2022). Determinant of Islamic Banks on the World Capital Structure. IQTISHODUNA: Jurnal Ekonomi Islam, 11(2), 195–206. https://doi.org/10.54471/iqtishoduna.v11i2.1874
Yaseen, A., & Widarjono, A. (2024). Does bank size matter for Islamic banks ’ profitability ? The insight from Indonesia. In Proceeding International Conference on Accounting and Finance, 2, 197–204.
Yudha, V., Fakultas, P., Dan, E., Islam, B., Abdurrahman, U. K. H., Pekalongan, W., Difa, F., Ekonomi, F., & Achmad, D. (2024). Investment Decision Analysis of Islamic Bank Listing Indonesia Stock Exchange Through Stock Price Valuation. 4, 1–12.
Published
2024-10-08
How to Cite
WARDANA, Guntur Kusuma.
A Analysis of Factors Affecting Stock Valuation Based on Price Earning Ratio.
JMK (Jurnal Manajemen dan Kewirausahaan), [S.l.], v. 9, n. 3, p. 281-291, oct. 2024.
ISSN 2656-0771.
Available at: <https://ejournal.uniska-kediri.ac.id/index.php/ManajemenKewirausahaan/article/view/5920>. Date accessed: 21 dec. 2024.
doi: https://doi.org/10.32503/jmk.v9i3.5920.
Section
Artikel Ilmiah
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
