<![CDATA[This study aims to empirically examine and analyze the effect of foreign ownership on Return on Assets (ROA) in companies listed on the LQ45 Index for the 2020–2024 period. The research employs a quantitative approach using panel data regression analysis, supported by classical assumption tests and robust standard error to address potential heteroskedasticity. The sample was selected through purposive sampling, consisting of 39 companies that conducted IPOs before 2020 and have complete financial statement data. The results show that foreign ownership has a positive and significant effect on ROA, supporting the hypothesis that the presence of foreign shareholders can enhance company profitability through better corporate governance practices, greater transparency, and stricter managerial monitoring. Meanwhile, control variables such as Debt-to-Asset Ratio (DAR) and Market Capitalization have a significant negative effect on ROA, indicating that higher leverage and larger firm size may reduce asset utilization efficiency. In contrast, Net Profit Margin (NPM) does not have a significant effect on ROA. The findings of this study reinforce the understanding that foreign ownership plays an important role in improving the financial performance of companies in Indonesia, particularly those with high liquidity and large market capitalization, such as those included in the LQ45 Index.]]>
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