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The Effect of Financial Performance on Firm Value in Transportation Sector Companies Listed on the Indonesia Stock Exchange (IDX) During 2020–2024 Amri Amrulloh; Halleina Rejeki Putri Hartono; Yopie Diondy Kurniawan; Nyimas Mahani Almasah
International Journal of Management, Accounting & Finance (KBIJMAF) Vol. 2 No. 4 (2025): October: International Journal of Management, Accounting & Finance (KBIJMAF)
Publisher : LPPM STIE Kasih Bangsa

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.70142/kbijmaf.v2i4.366

Abstract

This study aims to analyze the effect of financial performance on firm value in transportation sector companies listed on the Indonesia Stock Exchange (IDX) during the 2020–2024 period. The research uses a quantitative approach with a causal associative method, employing secondary data obtained from annual financial statements and capital market databases. Financial performance is measured using three indicators—Net Profit Margin (NPM), Return on Assets (ROA), and Return on Equity (ROE)—while firm value is measured using Earnings Per Share (EPS) and Price to Book Value (PBV). Data analysis is conducted using the Structural Equation Modeling (SEM) approach based on Partial Least Squares (SmartPLS). The results show that financial performance has a positive and significant effect on firm value, as indicated by a path coefficient of 0.8622, a t-statistic of 31.2125, and a p-value of 0.000. These findings imply that the better a company’s financial performance, the higher its firm value. The results also support the Signaling Theory, which explains that strong financial performance serves as a positive signal to investors about a company’s future prospects. The study highlights the strategic importance of profitability improvement, cost efficiency, and transparency in financial reporting to enhance firm value and strengthen investor confidence, especially in the transportation sector that plays a crucial role in post-pandemic economic recovery.
TRAINING ON STOCK INVESTMENT AS AN EFFORT TO IMPROVE FINANCIAL LITERACY RESIDENTS OF TAMAN SUBDISTRICT, MADIUN Amri Amrulloh; Mukti Prasaja; Asri Primasiwi; Nyimas Mahani Almasah
Prestise: Jurnal Pengabdian Kepada Masyarakat Bidang Ekonomi dan Bisnis Vol. 6 No. 1 (2026): Jurnal Pengabdian Kepada Masyarakat Bidang Ekonomi dan Bisnis
Publisher : Fakultas Ekonomi dan Bisnis Islam

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.15575/prestise.v6i1.52115

Abstract

Originality/novelty: The study contributes a localized community-service intervention combining interactive learning and stock investment simulations specifically tailored for neighborhood-level (RT) residents in Madiun City. Objective: The study aims to improve the financial literacy and stock investment understanding of residents in Taman Subdistrict, Madiun City, addressing limited knowledge regarding stock concepts, risks, and market participation through an educational community-service program. Methods/approach: The program engaged 25 male residents attending an RT community gathering in Taman Subdistrict, Madiun City. The intervention was implemented through interactive lectures, discussions, and simple stock investment simulations, followed by an evaluation of participant understanding and interest. Results: Participants demonstrated an increased understanding of stock concepts, market risks, and the procedures for opening a securities account. The training successfully fostered a positive impact by increasing residents' interest in legal investment. Implications: The training provides a practical community-engagement model for enhancing grassroots financial literacy, equipping local residents with the risk awareness and practical skills necessary to navigate legal stock investments safely.