Financial Performance Evaluation: The Role of ROA and ROE in Increase Company Value
This research aims to evaluate the financial performance of companies that go public in the banking sector by prioritizing the role of profitability variables in determining the value of the company. The indicators used are ROA and ROE which are important indicators used to measure the level of prof...
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| Format: | Article |
| Language: | English |
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Research Collaboration Community (RCC)
2025-06-01
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| Series: | International Journal of Business, Economics, and Social Development |
| Subjects: | |
| Online Access: | https://journal.rescollacomm.com/index.php/ijbesd/article/view/916 |
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| _version_ | 1849328959322324992 |
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| author | Siti Nurjanah Steven Natanael Wijaya Acep Komara Moh Yudi Mahadianto |
| author_facet | Siti Nurjanah Steven Natanael Wijaya Acep Komara Moh Yudi Mahadianto |
| author_sort | Siti Nurjanah |
| collection | DOAJ |
| description | This research aims to evaluate the financial performance of companies that go public in the banking sector by prioritizing the role of profitability variables in determining the value of the company. The indicators used are ROA and ROE which are important indicators used to measure the level of profitability and efficiency of a company in managing its assets and equity. In this study, quantitative data was obtained from the financial statements of several banks listed on the Indonesia Stock Exchange (IDX) in a certain period. To test the relationship between Return on Assets (ROA), Return on Equity (ROE), and company value, multiple regression analysis was used. The results show that ROA has a significant effect on company value, while ROE does not show a significant influence. These findings emphasize the importance of the role of banking management in optimizing ROA to increase the company's value in the eyes of investors. |
| format | Article |
| id | doaj-art-c28c609d0d784c5ea30b2313cce3ef27 |
| institution | Kabale University |
| issn | 2722-1164 2722-1156 |
| language | English |
| publishDate | 2025-06-01 |
| publisher | Research Collaboration Community (RCC) |
| record_format | Article |
| series | International Journal of Business, Economics, and Social Development |
| spelling | doaj-art-c28c609d0d784c5ea30b2313cce3ef272025-08-20T03:47:24ZengResearch Collaboration Community (RCC)International Journal of Business, Economics, and Social Development2722-11642722-11562025-06-016226427010.46336/ijbesd.v6i2.916679Financial Performance Evaluation: The Role of ROA and ROE in Increase Company ValueSiti Nurjanah0Steven Natanael Wijaya1Acep Komara2Moh Yudi Mahadianto3University of Swadaya Gunung JatiUniversity of Swadaya Gunung JatiUniversity of Swadaya Gunung JatiUniversity of Swadaya Gunung JatiThis research aims to evaluate the financial performance of companies that go public in the banking sector by prioritizing the role of profitability variables in determining the value of the company. The indicators used are ROA and ROE which are important indicators used to measure the level of profitability and efficiency of a company in managing its assets and equity. In this study, quantitative data was obtained from the financial statements of several banks listed on the Indonesia Stock Exchange (IDX) in a certain period. To test the relationship between Return on Assets (ROA), Return on Equity (ROE), and company value, multiple regression analysis was used. The results show that ROA has a significant effect on company value, while ROE does not show a significant influence. These findings emphasize the importance of the role of banking management in optimizing ROA to increase the company's value in the eyes of investors.https://journal.rescollacomm.com/index.php/ijbesd/article/view/916keywords: return on assets (roa), return on equity (roe), company value, economic uncertainty |
| spellingShingle | Siti Nurjanah Steven Natanael Wijaya Acep Komara Moh Yudi Mahadianto Financial Performance Evaluation: The Role of ROA and ROE in Increase Company Value International Journal of Business, Economics, and Social Development keywords: return on assets (roa), return on equity (roe), company value, economic uncertainty |
| title | Financial Performance Evaluation: The Role of ROA and ROE in Increase Company Value |
| title_full | Financial Performance Evaluation: The Role of ROA and ROE in Increase Company Value |
| title_fullStr | Financial Performance Evaluation: The Role of ROA and ROE in Increase Company Value |
| title_full_unstemmed | Financial Performance Evaluation: The Role of ROA and ROE in Increase Company Value |
| title_short | Financial Performance Evaluation: The Role of ROA and ROE in Increase Company Value |
| title_sort | financial performance evaluation the role of roa and roe in increase company value |
| topic | keywords: return on assets (roa), return on equity (roe), company value, economic uncertainty |
| url | https://journal.rescollacomm.com/index.php/ijbesd/article/view/916 |
| work_keys_str_mv | AT sitinurjanah financialperformanceevaluationtheroleofroaandroeinincreasecompanyvalue AT stevennatanaelwijaya financialperformanceevaluationtheroleofroaandroeinincreasecompanyvalue AT acepkomara financialperformanceevaluationtheroleofroaandroeinincreasecompanyvalue AT mohyudimahadianto financialperformanceevaluationtheroleofroaandroeinincreasecompanyvalue |