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Journal : Jurnal Ilmiah Manajemen Kesatuan

The Influence of Revenue Growth and Operating Expenses on Company Value Hou, Amin; Djohan, Deva; Duffin; Nabella, Septa Diana; Harianto, Adi
Jurnal Ilmiah Manajemen Kesatuan Vol. 13 No. 3 (2025): JIMKES Edisi Mei 2025
Publisher : LPPM Institut Bisnis dan Informatika Kesatuan

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.37641/jimkes.v13i3.3312

Abstract

This study aims to build a model of insurance company value based on revenue growth and operating expenses with Return on Equity (ROE) as a mediating variable. The study was conducted on six insurance companies listed on the IDX during the period 2020–2024 with a quantitative approach using SEM-PLS. The background of the study is the fluctuation of financial performance, especially the mismatch between revenue growth and equity efficiency and firm value. The results of the analysis show that revenue growth has a significant positive effect on firm value, both directly and through ROE. Conversely, operating expenses have a significant negative effect on firm value and are also mediated by ROE. ROE is proven to be a significant mediating variable in this relationship. The coefficient of determination (R²) value of 0.982 for firm value indicates that the model has a very strong ability to explain the variance of firm value. Meanwhile, R² for ROE of 0.566 indicates a moderate influence of the two independent variables. This study emphasizes the importance of increasing revenue and operational efficiency as a strategy to strengthen firm value and investor confidence.
Co-Authors , Nirmalasari Abdul Aziz Adi Harianto Ahmad Fadli Ahmad Fadli Ahmad Fadli Ahmad Rivai Ali Syah Putra Alimin, Erina Amanda, Diska Aminatu Zahra Andoko Andoko, Andoko Anita Anita Arsyaf Tampubolon Ayuni , Tyus Windi Br Ginting, Berupilihen Chaniago, Sabarudddin Chaniago, Sabaruddin Cici Handayani, Cici Dahrul Siregar Darwan Tanady Debora Tambunan Deby S O Pasaribu Deby Siska Oktavia Pasaribu Deby Siska Oktavia Pasaribu Denny Satria Dewi Rafiah Pakpahan Dini M Hutagalung Djohan, Deva Duffin Dwi Pertiwi Anggraini Dwita Sakuntala Eddy Harnjo Eka Martyna Theodora Elisa Oktavia Simatupang Emma Novirsar Enda Astika Ester Hervina Sihombing Ester Hervina Sihombing ESTER HERVINA SIHOMBING, ESTER HERVINA FADILA, ZAKIA Fauzia Mei Salsabila Fauzia Mei Salsabillah Fauzia Mei Salsabillah Fiqrida Amalia Gami, Emelia Rahmadany Putri Gani, Petrus Gea, Stevan Rejekima Gea, Wita Cristianni Ginting, Rika Adelina Br. Goh, Thomas Sumarsan Harahap, Taufiq Azmi Hariato, Adi Harman Syahfendi Harnjo, Eddy Hecimovic, Angela Hek, Tan Kim Ibrahim Mallam Fali Indah Juwita Indra Budiman Indra Budiman Iventura Fitra Uli Tamba Jen Peng Huang Jonathan Setiadi Pasaribu Juliansyah, Roni Kaseng, Asriyana Khairatun Nazah Leony Hoki Lili Maulidza M Fakhrul Hirzi M. Fakhrul Hirzi Mahyuddin Mahyuddin Manda Dwipayani Bhastary Martin Martin Martin Martin Martin Martin Martin Mega Sanjaya Mhd Restu Razaq Razaq Mhd. Restu Razaq Milka Rositi Sianipar Mipo, Mipo Mohamed Anis Benallal Mohammed Salim Benabadji Muhammad Fathoni Muhammad Fathoni, Muhammad Muhammad Restu Razaq Mustapha Si Tayeb Nainggolan, Susan G.V. Nasib Nasution, Muhammad Ilham Nasution, Sri Wanti Nazah, Khairatun Nidya Banuari Nissa, Fachrun Novirsari, Emma Pardede, Akim Manaor Hara Preddy Marpaung Prianda Pebri Prianda Pebri Rafael R.F. Sijabat Ramadhani, Laily Ratih Amelia Ratih Amelia, Ratih Ratna Sari Rifda Daulay, Zulia Rina Asriani Levianti Rivai, Ahmad Rivai, Ahmad Roma Sihombing Roni Juliansyah Rosita Rosita Salqaura, Siti Alhamra Saputra, Jumadil Septa Diana Nabella Sijauta, Dominggus Silaban, Jenti Natalia Simatupang, Jumeida Sinaga, Anggiat Sinaga, Tioma Maryanda Sinuhaji, Frans G Stevan Rejekiman Gea Sukiman Sukiman Surtan Hasibuan Surya Maulana SUSANTO Susilowati, Alicia Ulina Suwandy Purba Syafitri, Desy Ramadhani Syahlina, Maya Syukur Berkat Waruwu Theodora, Eka Martyna Tumangger, Ayu Bonita Sari Tumini Sipayung Tyus Windi Ayuni Vina Maria Ompusunggu Vina Winda Sari Vivi Asfianti Widy Hastuty Widy Hastuty HS Wijaya, Elyzabeth Wily Julitawaty, Wily Winda Sari, Vina Wulan Sari, Wulan Yehezkiel Wibisono Sagala Yenni Yenni Yusrizal Yusrizal ZAKIA FADILA