Analysis of the Effect of Return on Assets, Solvency, Liquidity, and Capital Adequacy Ratio on Company Value with Good Corporate Governance as a Moderation Variable in LQ45 Banking Companies Listed on the Indonesia Stock Exchange for the 2014-2022 Period

This study aims to gather empirical evidence regarding the impact of Return on Assets (ROA), Solvency, Liquidity, Capital Adequacy Ratio (CAR), and the Corporate Governance Perception Index (CGPI) as a moderating factor on the value of LQ45 Banking Companies listed on the Indonesia Stock Exchange. This research is crucial for understanding how financial metrics influence firm value in a key segment of the Indonesian banking sector. The sampling method employed was purposive sampling, resulting in a selection of four companies analyzed over the period from 2014 to 2022, totalling 36 units of analysis. A quantitative descriptive approach was adopted, utilizing the MRA absolute difference test to analyze the data. The findings indicate that ROA has a significant positive influence on firm value, emphasizing the importance of profitability in enhancing firm valuation. In contrast, Solvency, Liquidity, CAR, and CGPI do not exhibit a significant effect on firm value. Furthermore, CGPI does not moderate the impact of ROA, Solvency, Liquidity, and CAR on firm value. These results suggest that banking companies should prioritize improving profitability metrics like ROA to enhance their value. This study provides valuable insights for managers and stakeholders aiming to optimize firm performance in the Indonesian banking sector.