The Effects Of Bank Soundness With The RGEC Aproach (Risk Profile, Good Corporate Governance, Earnings, Capital) Of Leverage And Its Implication On Company's Values Of State Bank In Indonesia For The Period Of 2012-2016

Abstract

: The extent of bank soundness will provide great benefits for banks to gain customer trust in a bank institution. The purpose of this study is to examine partial and simultaneous effects of Company Value which consists of internal factors of the company associated with the Risk Profile (FDR), Good Corporate Governance (GCG), Earnings (ROA), and Capital on Leverage (CAR). The populations in this study are all companies incorporated in a state bank listed on the Indonesia Stock Exchange from 2012 to 2016. The samples of the study are 4 state banks in indonsia in accordance with the established criteria. Regression analysis is done based on the panel data analysis results. This research summarizes several things as follows: (1) Risk Profile (FDR) variable has positive and insignificant effect on Leverage, (2) Good Corporate Governance (GCG) has negative and significant effect on Leverage, (3) Earnings (NIM) has negative and insignificant effect on Leverage (4) Capital (CAR) have a negative and significant effect on Leverage, (5) Risk Profile, GCG, Earnings, and Capital simultaneously have positive and significant effect on Leverage supported with a leverage variable equal to 0.989227, or 98.92 percent, (6) Risk Profile has a negative and significant effect on Banking Value, (7) Good Corporate Governance (GCG) has negative and significant effect on Banking Value, (8) Earnings (NIM) has positive and significant effect on Banking Value, (9) Capital (CAR) has negative and insignificant effect on Banking Value, (10) Leverage (DER) have positive and insignificant effect on Banking Value, (11) Risk Profile, GCG, Earnings, Capital (RBBR) and Leverage simultaneously have a positive and significant effects on Banking Value supported with a variable of 0.994511 or 99.45 percent.