ANALYSIS OF THE EFFECT OF DIVIDEND PAYOUT RATIO AND FIRM SIZE ON COMPANY VALUE WITH PROFITABILITY AS A MEDIATING VARIABLE IN THE ENERGY SECTOR ON THE INDONESIA STOCK EXCHANGE

Willa Fatika Sari
Saputra , Darman

Journal of Economic, Bussines and Accounting (COSTING)
Vol. 8 No. 6 (2025): COSTING : Journal of Economic, Bussines and Accounting

This study aims to analyze the effect of Dividend Payout Ratio (DPR) and Firm Size on Company Value (PBV) with Profitability (ROE) as a mediating variable in energy sector companies on the Indonesia Stock Exchange for the 2018–2024 period. The method used is Partial Least Squares–Structural Equation Modeling (PLS-SEM). The results showed that DPR and Firm Size did not have a significant effect on ROE or PBV, and ROE also did not have a significant effect on PBV. Thus, ROE does not mediate the relationship between these variables. The insignificance of this influence reflects the characteristics of the energy sector which is volatile, capital-intensive, and facing a new and renewable energy transition. Investors pay more attention to asset efficiency, sustainable profitability, and capital structure than dividend policies or company scale.