The Effect of Profitability and Market Added Value on the Value of the Latest and Eco-Innovative Energy Companies Listed on IDX for the 2021-2024 Period
Keywords:
Profitability, Market Added Value, Company Value, Renewable Energy, Eco-InnovationAbstract
This study aims to analyze the influence of profitability and market value added (Market Value Added/MVA) on company value in the latest energy sector and eco-innovation listed on the Indonesia Stock Exchange (IDX) for the 2021–2024 period. A quantitative approach was used with panel data obtained from the annual financial statements of 35 renewable energy and ecoinnovative companies selected by purposive sampling. The profitability variable was measured using Return on Assets (ROA) and Return on Equity (ROE), while the company's value was measured using Tobin's Q. Analysis was carried out using panel data regression using the Fixed Effect Model (FEM) approach. The results showed that profitability had a significant positive effect on company value (β = 0.438, p < 0.001), while market value added (MVA) also had a significant positive effect (β = 0.312, p < 0.001). Both variables were simultaneously able to explain the 52.7% variation in company value. These findings imply that improving operational efficiency and the company's ability to create value for shareholders are key determinants in increasing the company's value in a sustainable energy sector.
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Copyright (c) 2026 Mahesa Dayanti, Nisrul Irawati , Amlys Syahputra Silalahi (Author)
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