The Influence of Capital Structure, Profitability, and Asset Growth on Firm Value in Energy Sector Companies Listed on the Indonesia Stock Exchange for the 2020-2024 Period

Abstract

The energy sector, particularly the coal subsector, faces fluctuations in commodity prices and global economic conditions that can affect company value. This study aims to analyze the effect of capital structure, profitability, and asset growth on company value in coal subsector companies listed on the Indonesia Stock Exchange for the 2020–2024 period. The study used a quantitative approach with an associative method. The population consisted of 87 energy sector companies, while the sample was selected using purposive sampling, resulting in 5 companies with 25 observations. Secondary data were obtained from the companies' financial reports. Capital structure was measured using the Debt to Equity Ratio, profitability using Return on Assets, asset growth using Asset Growth, and company value using Price to Book Value. The analysis was conducted using panel data regression with EViews 12 through the Chow, Hausman, multicollinearity, heteroscedasticity, coefficient of determination, F-test, and t-test. The results showed that capital structure and profitability had a positive and significant effect on company value, while asset growth had no significant effect. Simultaneously, all three variables had a significant effect on company value with an Adjusted R² of 43.49%. In conclusion, capital structure and profitability are important factors in increasing company value, while asset growth has not been a significant determinant