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The Nexus of Profitability, Invesment Decision, and Sustainability Reports on Company Value

Author

Listed:
  • Dwi Purwaningrum

    (Economic and Business, Universitas Insan Pembangunn Indonesia)

  • Maria Novita Olin

    (Economic and Business, Universitas Insan Pembangunn Indonesia)

  • Marhaendro Purno

    (Economic and Business, Universitas Insan Pembangunn Indonesia)

  • Dhaniel Hutagalung

    (Economic and Business, Universitas Insan Pembangunn Indonesia)

Abstract

This study sought to determine the impact of profitability, investment decisions, and sustainability disclosure on firm value. ROE is used to measure profitability, CVA/BVA is used to measure investment decisions, SRDI is used to measure sustainability, and Tobin’s Q is used to calculate corporate value. The data source is the company’s financial statements from 2018 to 2022, leading to the data collection method being secondary data. The research sample includes companies included in the LQ 45. The statistical test utilized is multiple linear regression. The findings of statistical studies show that profitability, investment decisions, and sustainability report disclosure all impact firm value (Y). Profitability has a partial effect on firm value, as do investment decisions and the disclosure of sustainability reports.

Suggested Citation

  • Dwi Purwaningrum & Maria Novita Olin & Marhaendro Purno & Dhaniel Hutagalung, 2024. "The Nexus of Profitability, Invesment Decision, and Sustainability Reports on Company Value," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 8(12), pages 3580-3587, December.
    • Handle: RePEc:bcp:journl:v:8:y:2024:i:12:p:3580-3587
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    References listed on IDEAS

    as
    1. Zaroug Othman Mohammed & Mawih Kareem Al Ani, 2020. "The Effect of Intangible Assets, Financial Performance and Financial Policies on the Firm Value: Evidence from Omani Industrial Sector," Contemporary Economics, University of Economics and Human Sciences in Warsaw., vol. 14(3), September.
    2. Mao-Chang Wang, 2017. "The Relationship between Firm Characteristics and the Disclosure of Sustainability Reporting," Sustainability, MDPI, vol. 9(4), pages 1-14, April.
    3. Jaja Suteja & Ardi Gunardi & Erik Syawal Alghifari & Audrey Amelya Susiadi & Alfina Sri Yulianti & Anggi Lestari, 2023. "Investment Decision and Firm Value: Moderating Effects of Corporate Social Responsibility and Profitability of Non-Financial Sector Companies on the Indonesia Stock Exchange," JRFM, MDPI, vol. 16(1), pages 1-13, January.
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