THE IMPACT OF PROFITABILITY ON COMPANY VALUE WITH MEDIATION OF FINANCIAL DISTRESS IN CONVENTIONAL BANKING LISTED ON THE IDX 2020-2023
This study aims to examine if profitability impacts company value in conventional banking businesses listed on the IDX, the Indonesian Stock Exchange, during 2020-2023, using financial distress as a mediating variable. Using secondary data from the financial statements of 27 banks selected through...
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| Format: | Article |
| Language: | English |
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Universitas Nusa Cendana
2025-03-01
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| Series: | Journal of Management Small and Medium Enterprises (SME's) |
| Subjects: | |
| Online Access: | https://ejurnal.undana.ac.id/index.php/JEM/article/view/20755 |
| _version_ | 1826538222191116288 |
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| author | Ida Fiatun Mardiana Mardiana |
| author_facet | Ida Fiatun Mardiana Mardiana |
| author_sort | Ida Fiatun |
| collection | DOAJ |
| description |
This study aims to examine if profitability impacts company value in conventional banking businesses listed on the IDX, the Indonesian Stock Exchange, during 2020-2023, using financial distress as a mediating variable. Using secondary data from the financial statements of 27 banks selected through purposive sampling techniques, this study adopts a quantitative methodology. Data analysis using path analysis with E-Views 12 software. Based on the study's results, financial distress significantly impacts company value, whereas profitability has no discernible impact. In addition, profitability significantly affects financial distress. However, the connection between company value and profitability cannot be mediated by financial distress. This study suggests that banks can manage financial distress effectively to increase firm value. Further research should consider other variables affecting firm value, such as macroeconomic conditions and stock market trends.
Keywords: Firm Value; Profitability; Financial Distress
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| first_indexed | 2025-03-14T03:23:10Z |
| format | Article |
| id | doaj.art-f569b47ea8f94c6aa2e9c71a48c7e7af |
| institution | Directory Open Access Journal |
| issn | 2502-2385 2723-469X |
| language | English |
| last_indexed | 2025-03-14T03:23:10Z |
| publishDate | 2025-03-01 |
| publisher | Universitas Nusa Cendana |
| record_format | Article |
| series | Journal of Management Small and Medium Enterprises (SME's) |
| spelling | doaj.art-f569b47ea8f94c6aa2e9c71a48c7e7af2025-03-09T12:31:11ZengUniversitas Nusa CendanaJournal of Management Small and Medium Enterprises (SME's)2502-23852723-469X2025-03-0118110.35508/jom.v18i1.20755THE IMPACT OF PROFITABILITY ON COMPANY VALUE WITH MEDIATION OF FINANCIAL DISTRESS IN CONVENTIONAL BANKING LISTED ON THE IDX 2020-2023Ida Fiatun0Mardiana Mardiana1Department of Management, Faculty of Economics, Islamic University of Maulana Malik Ibrahim MalangDepartment of Management, Faculty of Economics, Islamic University of Maulana Malik Ibrahim Malang This study aims to examine if profitability impacts company value in conventional banking businesses listed on the IDX, the Indonesian Stock Exchange, during 2020-2023, using financial distress as a mediating variable. Using secondary data from the financial statements of 27 banks selected through purposive sampling techniques, this study adopts a quantitative methodology. Data analysis using path analysis with E-Views 12 software. Based on the study's results, financial distress significantly impacts company value, whereas profitability has no discernible impact. In addition, profitability significantly affects financial distress. However, the connection between company value and profitability cannot be mediated by financial distress. This study suggests that banks can manage financial distress effectively to increase firm value. Further research should consider other variables affecting firm value, such as macroeconomic conditions and stock market trends. Keywords: Firm Value; Profitability; Financial Distress https://ejurnal.undana.ac.id/index.php/JEM/article/view/20755Firm ValueProfitabilitasFinancial Distress |
| spellingShingle | Ida Fiatun Mardiana Mardiana THE IMPACT OF PROFITABILITY ON COMPANY VALUE WITH MEDIATION OF FINANCIAL DISTRESS IN CONVENTIONAL BANKING LISTED ON THE IDX 2020-2023 Journal of Management Small and Medium Enterprises (SME's) Firm Value Profitabilitas Financial Distress |
| title | THE IMPACT OF PROFITABILITY ON COMPANY VALUE WITH MEDIATION OF FINANCIAL DISTRESS IN CONVENTIONAL BANKING LISTED ON THE IDX 2020-2023 |
| title_full | THE IMPACT OF PROFITABILITY ON COMPANY VALUE WITH MEDIATION OF FINANCIAL DISTRESS IN CONVENTIONAL BANKING LISTED ON THE IDX 2020-2023 |
| title_fullStr | THE IMPACT OF PROFITABILITY ON COMPANY VALUE WITH MEDIATION OF FINANCIAL DISTRESS IN CONVENTIONAL BANKING LISTED ON THE IDX 2020-2023 |
| title_full_unstemmed | THE IMPACT OF PROFITABILITY ON COMPANY VALUE WITH MEDIATION OF FINANCIAL DISTRESS IN CONVENTIONAL BANKING LISTED ON THE IDX 2020-2023 |
| title_short | THE IMPACT OF PROFITABILITY ON COMPANY VALUE WITH MEDIATION OF FINANCIAL DISTRESS IN CONVENTIONAL BANKING LISTED ON THE IDX 2020-2023 |
| title_sort | impact of profitability on company value with mediation of financial distress in conventional banking listed on the idx 2020 2023 |
| topic | Firm Value Profitabilitas Financial Distress |
| url | https://ejurnal.undana.ac.id/index.php/JEM/article/view/20755 |
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