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Do profitability and liquidity drive market valuations? A study based on Tobin Q in LQ45 Firms (Q1 2021 – Q3 2024) Aditya Wardana; Rolan Mart Sasongko; Hafidh Rifky Adiyatna; Ryan Setya Budi; Ida Ayu Fatmayuni
Priviet Social Sciences Journal Vol. 5 No. 9 (2025): September 2025
Publisher : Privietlab

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.55942/pssj.v5i9.587

Abstract

This study aims to evaluate the effect of return on assets and current ratio on firm value in LQ45 indexed companies from Q1 2021 until Q3 2024. Quantitative causal-comparative design used and a census sampling of 45 companies (675 observations), This study employs Tobin’s Q as an indicator of firm value. The analysis reveals that ROA positively and significantly influences firm value, indicating that higher profitability improves investor valuation. In contrast, there is no statistically significant relationship between CR and firm value, suggesting that liquidity is not a primary driver of market valuation. Recommendations include focusing on profitability and asset efficiency to increase firm value, while future research should explore additional variables such as firm size or leverage. The limitations of this study relate to the use of Tobin's Q as a measure of firm value, whereas other methods can also be used.
Comparison of capital structure, risk, and profitability between Islamic and conventional banks in Indonesia Arowadi Lubis; Ida Ayu Fatmayuni; Hikmah Endraswati
Priviet Social Sciences Journal Vol. 5 No. 10 (2025): October 2025
Publisher : Privietlab

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.55942/pssj.v5i10.588

Abstract

This study aims to compare Islamic and Conventional Banks in Indonesia in terms of Capital Structure, Profitability, and Risk handling. Data for the analysis were taken from the quarterly financial reports of nine Islamic and Conventional Banks for the 2013Q1 – 2020Q3 period. Binary logistic regression was employed as an analysis tool using SPSS 19 software. The results show that Islamic and Conventional Banks are significantly different in terms of capital structure, profitability, and risk handling. Conventional banks have better capital structures and profitability. Islamic Banks, on the other hand, have better risk management.