Fundamental Aspects, Company Size and Dividend Policy on Company Value Through Stock Prices in LQ-45 Indexed Banking

Abstract

Company value reflects investors' views on the company, which is the basis for making investment decisions. This study aims to determine the effect of fundamental aspects, company size, and dividend policy on company value through stock prices in LQ-45 indexed banking companies listed on the Indonesia Stock Exchange (IDX). This study uses a quantitative approach and secondary data in the form of annual financial reports from [www.idx.co.id](http://www.idx.co.id). The population in this study is banking sector companies listed on the Indonesia Stock Exchange (IDX) in the period 2018–2023. A total of 6 companies were selected as samples based on the criteria of LQ-45 indexed banking sector companies. The data analysis method used was SEM-PLS version 4.0. The results indicate that fundamental aspects have a significant positive effect on stock prices. Company size has a significant positive effect on stock prices, while dividend policy has no effect on stock prices. Stock prices have a significant effect on company value. Fundamental aspects and company size have a significant positive effect on company value, and dividend policy has a significant positive effect on company value. Fundamental aspects and company size have a significant positive effect on company value through stock prices, while dividend policy has no effect on company value through stock prices. The novelty of this study lies in the use of stock prices as a mediating variable to examine the relationship between fundamental aspects, company size, dividend policy, and company value. This study implies that increasing company value can be supported by strengthening fundamental aspects and company size, which are reflected in stock prices, while dividend policy is not a primary factor influencing company value through stock prices.