Lead Journal of Economy and Administration
Vol 4 No 1 (2025): Lead Journal of Economy and Administration (LEJEA)

The Relationship Between Financial Ratios, Company Growth, and Shareholder Value in Financial Statement Reporting

Wiryamanta, Rafif Putra (Unknown)
Kurnia, Silvi (Unknown)
Hamada, Maurheen Queena (Unknown)
Nugraha, Viery Erlangga (Unknown)
Pandin, Maria Yovita R (Unknown)



Article Info

Publish Date
29 Jul 2025

Abstract

This study examines the relationship between corporate expansion, crucial financial indicators, and the worth attributed to shareholders, specifically within companies listed on the Indonesia Stock Exchange. The financial metrics considered in this analysis are Return on Equity (ROE), the Debt to Equity Ratio (DER), and Earnings Per Share (EPS). A quantitative approach was adopted, involving the examination of financial statements spanning from 2018 to 2022. Multiple regression analysis was utilized to assess how independent variables affect shareholder value. The findings indicate that both ROE and company growth positively influence shareholder value, whereas a higher DER negatively impacts it. These results highlight the critical role of proficient management in optimizing equity utilization and managing debt to enhance company valuation. This study contributes to a deeper understanding of how financial ratios and growth interact to shape shareholder value. It offers recommendations for company leadership to prioritize boosting ROE and fostering sustainable growth while mitigating debt-related risks. Furthermore, it suggests that future studies could benefit from a broader sample and the inclusion of macroeconomic factors for more robust conclusions. Consequently, this research can inform sound investment choices and financial management approaches for businesses.

Copyrights © 2025






Journal Info

Abbrev

Lejea

Publisher

Subject

Decision Sciences, Operations Research & Management Economics, Econometrics & Finance Social Sciences

Description

Lead Journal of Economy and Administration is a periodical scientific journal published based on scientific journal principles aimed at publishing scientific works resulting from research, development and literature studies in the field of economy and administration, and scope this journal: Macro ...