The Influence of Return on Equity and Earnings Per Share on Price Book Value with Closing Price as a Variable Mediation in Digital Bank Companies Listed on The Indonesian Stock Exchange

Abstract

The development of digital technology has driven the transformation of the financial sector, including the emergence of digital banks as an adaptation to the needs of modern society. Digital banks offer efficiency and flexibility, but face challenges in increasing company value. This research aims to analyze the influence of ROE and EPS on PBV with CP as a mediating variable in digital banking companies listed on the Indonesia Stock Exchange. The research population includes all digital banking companies listed on the Indonesian Stock Exchange. The sample was selected using a purposive sampling method, with a total of 9 digital banking companies during 2019-2023. Secondary data was obtained from annual financial reports. The data analysis technique uses the Panel Data Method. The research results show that ROE has a negative influence on PBV both directly and through CP as a mediating variable. EPS also has a direct negative influence on PBV. However, CP has a significant positive influence on PBV, this shows that share prices can be an important indicator in increasing company value. However, CP does not significantly mediate the relationship between ROE and EPS on PBV.