The Influence of Profitability, Firm Dynamics, and Digital Transformation on Firm Value

Hendri Mustaqim; Zuraida Zuraida; Fifi Yusmita

doi:10.55927/jambak.v4i1.158

Authors

Hendri Mustaqim Universitas Syiah Kuala
Zuraida Zuraida Universitas Syiah Kuala
Fifi Yusmita Universitas Syiah Kuala

DOI:

https://doi.org/10.55927/jambak.v4i1.158

Keywords:

Profitability, Firm Dynamics, Digital Transformation, Firm Value

Abstract

Fluctuations or a decline in a company’s value can reduce investor trust, making it more challenging for firms to secure funding. This research aims to analyze both the simultaneous and individual impacts of profitability, firm dynamics, and digital transformation on firm value. A causal research design is utilized in this study. The population consists of mining companies listed on the Indonesia Stock Exchange (IDX) between 2019 and 2022. A purposive sampling method was applied, selecting mining companies that met specific criteria, resulting in a total of 200 observations. The study uses secondary data sources, and the analytical method employed is panel data regression. The findings reveal that profitability, firm dynamics, and digital transformation collectively have a significant influence on firm value. Individually, profitability shows a negative relationship with firm value, while firm dynamics exhibit a positive impact. In contrast, digital transformation does not have a statistically significant effect on firm value among mining companies listed on the IDX.

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