The Influence of Revenues Growth and Return on Assets on Market Capitalization of Financial Companies Listed on the Indonesia Stock Exchange
DOI:
https://doi.org/10.59890/ijefbs.v4i4.33Keywords:
Revenues Growth, Return on Assets, Market Capitalization, Financial CompaniesAbstract
Market capitalization represents market values of company’s equity. The values fluctuate according to the market dynamics. The transaction value per share shows the how much payment made by investor to own of the stock offered in the market. Willingness to pay by investor may arise as the result of some determinants, which among others are revenues growth and return on assets.
This study investigates the influence of revenues growth and return on assets on market capitalization of financial companies listed on the Indonesia Stock Exchange. This research employs observations from 10 firms for the periods 2021-2025. Data is obtained from secondary sources and selected under purposive sampling method. Data is analyzed through multiple regression analysis approach and processed through SPSS version 25.
The results of this research show that each of revenues growth and return on assets does not have significant influence partially on market capitalization. Simultaneously, both independent variables do not have significant influence on market capitalization.
References
Berk, J., & DeMarzo, P. (2014). Corporate Finance. 6th ed. Pearson.
Bose, S., Shamsb, S., Ali, M.J. and Mihret, D. (2021), “COVID-19 impact, sustainability performance and firm value: international evidence”, Accounting and Finance, Vol. 62 No. 1, pp. 597-643, doi: 10.1111/acfi.12801.
Creswell, J. W., & Creswell, J. D. (2018). Research Design: Qualitative, Quantitative, and Mixed Methods Approaches (5th ed.). Los Angeles: SAGE Publications.
Dubey, U., Kothari, D. P., & Awari, G. K. (2017). Quantitative Techniques in Business, Management and Finance. Chapman and Hall/CRC.
https://assets.kpmg.com/content/dam/kpmgsites/xx/pdf/ifrg/2025/isg-handbook-revenue.pdf
Kaplan Schweser. (2019). CFA 2019 Schweser - Level 1 Schweser Notes Book 3: Financial Reporting and Analysis (Vol. 3). United States of America: Kaplan, Inc.
Liviani, R. and Rachman, Y.T. (2021), “The influence of leverage, sales growth, and dividend policy on company value”, International Journal of Financial, Accounting, and Management, Vol. 3 No. 2, pp. 165-178, doi: 10.35912/ijfam.v3i2.189.
Nasir, M., Shahbaz, M., Thi, T.C., and Shubita, M. (2020), “Development of Vietnamese Stock Market: Influence of Domestic Macroeconomic Environment and Regional Markets”, International Journal of Finance and Economics, Vol. 26 No. 1, pp. 1435-1458, doi: 10.1002/ijfe.1857.
Nguyen, A.H., Cuong, D.P., Nga, T.D., Trang, T.T., Nguyen, H.T., and Truong, T.V. (2021) “The Effect of Dividend Payment on Firm’s Financial Performance: An Empirical Study of Vietnam”, Journal of Risk and Financial Management, Vol. 14, pp. 1-11, doi: 10.3390/jrfm14080353
Nguyen, P.D. and Minh, T.T.N (2025) “Determinants of Market Capitalization of Listed Firms: Evidence from An Emerging Country”, Journal of Economics and Development, Vol. 27.1, pp. 38-55
Spence, M. (1973). Job Market Signaling. The Quarterly Journal of Economics, 87(3), 355–374
Stockemer, D. (2019). Quantitative Methods for the Social Sciences: A Practical Introduction with Examples in SPSS and Stata. Ottawa, Ontario, Canada: Springer International Publishing. doi:10.1007/978-3-319-99118-4
Sugianto, S., Oemar, F., Hakim, L. and Endri, E. (2020), “Determinants of firm value in the banking sector: random effects model”, International Journal of Innovation, Creativity and Change, Vol. 12 No. 8, pp. 208-218
Yin, R. K. (2018). Case study research and applications: design and methods (6th ed.). Los Angeles: SAGE Publications.
