Financial Performance and Company Value: Evidence from Energy Sector Companies Listed on the IDX

Abstract

This study aims to analyze the effect of profitability, liquidity, leverage, and firm size on company value in the energy sector listed on the Indonesia Stock Exchange (IDX) during the 2020–2024 period. Company value is measured by Tobin’s Q, profitability is measured by Return on Assets (ROA), liquidity is measured by the Current Ratio (CR), leverage is measured by the Debt to Equity Ratio (DER), and firm size is measured by the natural logarithm of total assets (Ln Total Assets). This study employs a quantitative approach using panel data consisting of 185 observations. The data are analyzed using panel regression analysis with the best model selected through model specification tests. The results show that profitability has a positive and significant effect on company value. Meanwhile, liquidity and leverage have no significant effect on company value. Firm size has a negative and significant effect on company value. These findings indicate that company value is primarily driven by profitability rather than liquidity, leverage, and firm size. This study supports signaling theory and agency theory in explaining company value behavior in the energy sector.