The Influence of Financial Factors on Stock Performance and Their Implication on Firm Value in Coal Subsector Companies Listed on The Indonesia Stock Exchange using SEM PLS
DOI:
https://doi.org/10.59141/jiss.v6i7.1742Keywords:
profitability, leverage, liquidityAbstract
The purpose of this study is to examine the impact of financial factors on company value and stock performance in coal subsector companies listed on the Indonesia Stock Exchange. The study is based on the necessity of understanding how financial indicators such as profitability, leverage, liquidity, and corporate actions influence firm value and investor perception, especially in capital-intensive industries that are extremely sensitive to external swings. Previous research has shown conflicting results, indicating the need for additional empirical examination, particularly in Indonesia's energy sector setting. The study adopts a quantitative approach called Structural Equation Modeling - Partial Least Squares (SEM-PLS). The sample consists of 57 observations gathered specifically from coal company annual reports for the years 2023-2024. Exogenous factors (X) include profitability (ROA, ROE), leverage (DER), liquidity (CR), and corporate action (DIV). Endogenous variables (Y) include Stock Performance (Stock Return) and Firm Value (PBV). The study shows that only leverage has a substantial and favourable effect on stock performance (path coefficient = 0.331, p-value = 0.005). Other variables, including profitability, liquidity, and corporate actions, have no substantial impact on firm valuation or stock performance. These findings imply that, in the coal sector, external factors and market mood may be more important than traditional financial measures in determining business value and investor reactions
References
Anugrah Maulidina, A. (2020). The effect of profitability, liquidity, and leverage on the value of a manufacturing company. Scientific Journal of Accounting, 9(1), 12–25.
Brigham, E. F., & Daves, P. R. (2014). Intermediate financial management (12th ed.). Cengage Learning.
Brigham, E. F., & Houston, J. F. (2011). Fundamentals of financial management (Edition 11, A. Subekti, Editor). Jakarta: Salemba Four.
Brigham, E. F., & Houston, J. F. (2015). Fundamentals of financial management (14th ed.). Cengage Learning.
Fahmi, I. (2013). Analysis of financial statements. Bandung: Alfabeta.
Gitman, L. J. (2015). Principles of managerial finance (14th ed.). Pearson Education.
Hair, J. F., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2019). A primer on partial least squares structural equation modeling (PLS-SEM) (2nd ed.). SAGE Publications.
Harahap, S. S. (2020). Critical analysis of financial statements (Edition 12). Jakarta: RajaGrafindo Persada.
Heikal, J., & Awalludin, A. (2024). The influence of offering equity, brand equity, and relationship equity on customer satisfaction and customer loyalty. International Journal of Management and Business Applied, 3(2), 110–128.
Heikal, J., & Khairiah, K. (2024). Analysis of the relationship between CAPM value, WACC, and return on assets on optimal capital structure decisions. Journal of Applied Finance and Management, 6(1), 110–117.
Heikal, J., Hendrawan, E., Zakaria, D., & Salwa, E. (2024). Customer renewal prediction for motor vehicle insurance using binary logistic regression in PT XYZ Insurance. Innovative: Journal of Social Science Research, 4(6), 458–469.
Heikal, J., Kettipusem, S. P., & Khairiah, K. (2024). The effect of competence and professionalism on the performance of agricultural extension workers with job satisfaction as a moderation variable at the Payakumbuh City Agriculture Office. CBJIS: Cross-Border Journal of Islamic Studies, 6(1), 110–121. https://doi.org/10.37567/cbjis.v6i1.3067
Heikal, J., Permanasari, R., Chandra, R. A., & Fitriansyah, A. (2024). Analysis of the effectiveness of digital advertising campaigns on market interest in Club Biathlon swimming training program using binary logistic regression method. Multidisciplinary Scientific Journal, 8(4), 1182–1190.
Heikal, J., Putra, R. D., & Haryadi, T. (2025). The influence of product characteristic factors on repurchase decisions using binary logistics regression on food products. Journal of Scientific Scholars (J-CEKI), 4(3), 1831–1842.
Husnan, S. (2015). Fundamentals of portfolio theory and securities analysis (Edition 6). Yogyakarta: UPP STIM YKPN.
Jogiyanto, H. M. (2010). Portfolio theory and investment analysis (Edition 7). Yogyakarta: BPFE.
Cashmere. (2018). Analysis of financial statements (Revised Edition). Jakarta: Rajagrafindo Persada.
Kettipusem, S. P., & Heikal, J. (2024). The effect of competence and professionalism on the performance of agricultural extension workers with job satisfaction as a moderation variable at the Payakumbuh City Agriculture Office. CBJIS: Cross-Border Journal of Islamic Studies, 6(1), 110–111. https://doi.org/10.37567/cbjis.v6i1.3067
Lintner, J. (1956). Distribution of incomes of corporations among dividends, retained earnings, and taxes. American Economic Review, 46(2), 97–113.
Mahendra, I., & Purwanto, A. (2024). The effect of financial performance, dividend policy, and sustainability disclosure on the company's value. Journal of Strategic Management, 15(1), 77–89.
Modigliani, F., & Miller, M. H. (1958). The cost of capital, corporation finance, and the theory of investment. American Economic Review, 48(3), 261–297.
Myers, S. C. (1984). The capital structure puzzle. Journal of Finance, 39(3), 575–592. https://doi.org/10.1111/j.1540-6261.1984.tb03646.x
Nasir, A., Wiguna, M., Andreas, A., Hardi, H., & Taufik, T. (2023). Analysis of potential factors of financial statement disclosure: Evidence from Indonesian local government. Investment Management & Financial Innovations, 20(1), 38.
Putra, A. D., Arifin, S., Ardanesworo, M. F. K. P., & Heikal, J. (2025). Analysis of factors influencing repurchase decisions for Mie Sedaap products using binary logistic regression method. J-CEKI: Journal of Scientific Scholars, 4(2), 2058–2060.
Ross, S. A. (1977). The determination of financial structure: The incentive-signaling approach. The Bell Journal of Economics, 8(1), 23–40. https://doi.org/10.2307/3003485
Ross, S. A., Westerfield, R. W., & Jaffe, J. F. (2008). Corporate finance (8th ed.). McGraw-Hill.
Sofyan, H. (2021). Analysis of the influence of leverage, profitability, and company size on the company's value in mining companies. Journal of Economics, 18(2), 41–52.
Tandelilin, E. (2017). Portfolios and investments: Theory and applications (Revised Edition). Yogyakarta: Kanisius.
Yudanti, R. A., & Wardoyo, T. (2022). The effect of profitability, liquidity, and leverage on the value of companies in the energy sector. Journal of Management Science, 10(4), 208–220.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2025 Triesna Ratulina, Heru Prabowo, Jerry Heikal
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution-ShareAlike 4.0 International. that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work.
