IDEAS home Printed from https://ideas.repec.org/a/aac/ijirss/v8y2025i6p604-622id9661.html
   My bibliography  Save this article

Does profitability play a role in mediating the determinants of firm value?

Author

Listed:
  • Alfi Syahril Fuadi Jaya

  • Muhammad Arfan

  • Darwanis Darwanis

  • Mulia Saputra

Abstract

This study aims to examine the role of profitability in mediating the determinants of firm value. The determinants of firm value identified in this study are GCG and CSR. Design/methodology/approach with the population in this study are manufacturing companies listed on the IDX for the period 2019-2023. This study uses unbalanced panel data. By using the Slovin formula, the research sample consists of 290 observations (290 firm-years). The sample was selected randomly using stratified random sampling. Data were analyzed using path analysis. The results show that institutional ownership has a positive effect on profitability, while independent commissioners, audit committees, and CSR do not affect profitability. Furthermore, audit committees and profitability have a positive effect on firm value, while independent commissioners, institutional ownership, and CSR do not affect firm value. Profitability can only mediate the effect of institutional ownership on firm value. Research limitations or implications: The researcher only studied manufacturing companies listed on the IDX, so the results cannot be generalized to all companies listed on the IDX. Practical implications: One of the efforts that can be done by managers to increase the value of the company is by increasing profitability. Increasing institutional ownership is one alternative that can be done by managers to increase profitability.

Suggested Citation

  • Alfi Syahril Fuadi Jaya & Muhammad Arfan & Darwanis Darwanis & Mulia Saputra, 2025. "Does profitability play a role in mediating the determinants of firm value?," International Journal of Innovative Research and Scientific Studies, Innovative Research Publishing, vol. 8(6), pages 604-622.
    • Handle: RePEc:aac:ijirss:v:8:y:2025:i:6:p:604-622:id:9661
    as

    Download full text from publisher

    File URL: https://ijirss.com/index.php/ijirss/article/view/9661/2182
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aac:ijirss:v:8:y:2025:i:6:p:604-622:id:9661. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Natalie Jean (email available below). General contact details of provider: https://ijirss.com/index.php/ijirss/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.