The Influence Of Return On Investment (ROI) To Price To Book Value (PBV)

Fadilla Fadilla; Dika Perkasa; Akbar Maulana

doi:10.36908/isbank.v12i1.1953

Authors

Fadilla Fadilla Sekolah Tinggi Ekonomi dan Bisnis Syariah (STEBIS) Indo Global Mandiri
Dika Perkasa Sekolah Tinggi Ekonomi dan Bisnis Syariah (STEBIS) Indo Global Mandiri
Akbar Maulana Sekolah Tinggi Ekonomi dan Bisnis Syariah (STEBIS) Indo Global Mandiri

DOI: https://doi.org/10.36908/isbank.v12i1.1953

Keywords:

Price to Book Value (PBV), Return on Investment (ROI), ASEAN

Abstract

This study aims to analyze the effect of profitability proxied by Return on Investment (ROI) on firm value, proxied by Price to Book Value (PBV). The study was conducted on companies from five ASEAN countries, with a sample size of 149 companies. Purposive sampling was employed as the sampling technique. Simple linear regression was used as the analysis method, using SPSS software. The results indicate that Return on Investment (ROI) has a significant effect on Price to Book Value (PBV) , evidenced by a significant value of 0.002. These findings suggest that a higher ROI corresponds to a higher Price to Book Value (PBV) for the company.

Downloads

Download data is not yet available.

References

Ahmad, H., Muslim, M., & Syahrah, N. (2022). Several Factors Affecting Firm Value Manufacturing in Indonesia. Jurnal A Akuntansi , XXVI (01), 127–143.

Akhmadi, Ichwanudin, & Wawansari. (2023). Leverage and liquidity to firm value moderated by firm size: a signaling theory approach. Enrichment: Journal of Management , 13 (3), 2073–2082.

Albanbeava, D., Amerkulova, Z., Sharsheeva, A., & & Chaldanbeava, A. (2024). Financial and economic approaches to pedagogical monitoring in higher education: Quality assurance through green economy principles. Scientific Journal , 11 (4), 9–26.

Andreas, A., Christin, C., Wijaya, SW, & Sembiring, JC (2021). Effect of Liquidity, Asset Management, Leverage and Dividend Policy on Firm Value at Food and Beverages Companies Listed on the Indonesia Stock Exchange. Budapest International Research and Critics Institute (BIRCI-Journal): Humanities and Social Sciences , 4 (2), 2695–2701. https://doi.org/10.33258/birci.v4i2.1977

Aouadi, A., & Marsat, S. (2018). Do ESG Controversies Matter for Firm Value? Evidence from International Data. Journal of Business Ethics , 151 (4), 1027–1047. https://doi.org/10.1007/s10551-016-3213-8

Awn, AM, & Azam, SMF (2020). Libyan investors' intention to invest in Islamic sukuk: Theory of planned behavior Approach. European Journal of Economic and Financial Research , 4 (1), 71–90. https://doi.org/10.5281/zenodo.3774672

Aydoğmuş, M., Gülay, G., & Ergun, K. (2022). Impact of ESG performance on firm value and profitability. Borsa Istanbul Review , 22 , S119–S127. https://doi.org/10.1016/j.bir.2022.11.006

Badruzaman, J., Fadilah, AR, & Abdurrahman, F. (2022). Determining the Effect of Return on Equity (ROE) on Price Earnings Ratio (PER) and Price to Book Value (PBV) in LQ45 companies, Indonesia. WSEAS Transactions on Business and Economics , 19 (141), 1564–1575. https://doi.org/10.37394/23207.2022.19.141

Buallay, A. (2019). Management of Environmental Quality: An International Journal Is sustainability reporting (ESG) associated with performance? Evidence from the European banking sector. Management of Environmental Quality: An International Journal , 30 (1), 98–115. https://doi.org/10.1108/MEQ-12-2017-0149

Bustani, B., Kurniaty, K., & Widyanti, R. (2021). The Effect of Earnings Per Share, Price to Book Value, Dividend Payout Ratio, and Net Profit Margin on the Stock Price in the Indonesia Stock Exchange. Jurnal Maksipreneur: Manajemen, Koperasi, Dan Entrepreneurship , 11 (1), 1–18. https://doi.org/10.30588/jmp.v11i1.810

Dwiputra, T., & Viriany. (2020). THE EFFECT OF PROFITABILITY, LIQUIDITY, LEVERAGE, AND COMPANY SIZE. Multiparadigma , 2 (2), 982–990.

Gunawan, R., Widiyanti, M., Malinda, S., & Adam, M. (2022). The Effect of Current Ratio, Total Asset Turnover, Debt To Asset Ratio, and Debt To Equity Ratio on Return on Assets in Plantation Sub-Sector Companies Listed on the Indonesia Stock Exchange. International Journal of Economic, Business, Accounting, Agriculture Management and Sharia Administration (IJEBAS) , 2 (1), 19–28. https://doi.org/10.54443/ijebas.v2i1.139

Hoi, C. K. (Stan), Xiong, J., & Zou, H. (2020). Ownership identity and corporate donations: evidence from a natural experiment in China. China Finance Review International , 10 (2), 113–142. https://doi.org/10.1108/CFRI-11-2019-0154

Mohammad, WMW, & Wasiuzzaman, S. (2021). Environmental, Social and Governance (ESG) disclosure, competitive advantage and performance of firms in Malaysia. Cleaner Environmental Systems , 2 (1), 1–20. https://doi.org/10.1016/j.cesys.2021.100015

Munir, Q., Akram, B., & Abbas, S.A. (2024). Understanding Stock Price Dynamics with Dividend-Related Metrics and Financial Indicators in Pakistan's Non-Financial Sectors. Journal of Business and Economic Options (JBEO) , 7 (1), 1–9.

Passos, GDA &, & Campos-rasera, PP (2023). Do ESG Controversies Influence Firm Value? An Analysis with Longitudinal Data in Different Countries. Brazilian Business Review , 21 (1), 1–17.

Quintiliani, A. (2022). ESG and Firm Value. Accounting and Finance Research , 11 (4), 37–47. https://doi.org/10.5430/afr.v11n4p37

Serafeim, G. (2020). Public Sentiment and the Price of Corporate Sustainability. Financial Analysts Journal , 76 (2), 26–46. https://doi.org/10.1080/0015198X.2020.1723390

Tjio, A.H., Lee, A., & Woan, P. (2023). Can UK Small Business Obtain Growth Capital in The Public Equity Markets? Delaware Journal of Corporate Law , 28 (2), 933–1001.

Wasiuzzaman, S., Ibrahim, SA, & Kawi, F. (2023). Environmental, social and governance (ESG) disclosure and firm performance: does national culture matter? Meditari Accountancy Research , 31 (5), 1–23. https://doi.org/10.1108/MEDAR-06-2021-1356

Wong, WC, Batten, JA, Ahmad, AH, Mohamed-Arshad, SB, Nordin, S., & Adzis, AA (2021). Does ESG certification add firm value? Finance Research Letters , 39 , 101593. https://doi.org/10.1016/j.frl.2020.101593

Yu, X., & Xiao, K. (2022). Does ESG Performance Affect Firm Value? Evidence from a New ESG-Scoring Approach for Chinese Enterprises. Sustainability (Switzerland) , 14 (24), 1–40. https://doi.org/10.3390/su142416940