THE EFFECT OF PROFITABILITY, FIRM SIZE, AND AUDIT QUALITY ON FIRM VALUE IN ENERGY SECTOR COMPANIES LISTED ON THE INDONESIA STOCK EXCHANGE

ABSTRACK

This study aims to examine and analyze the effect of profitability (Return on Assets), firm size (logarithm of total assets), and audit quality (earning surprise benchmark) on firm value (Price to Book Value) in energy sector companies listed on the Indonesia Stock Exchange for the period
2021–2023, The research method used is quantitative with a panel data approach. The sample was obtained through purposive sampling, resulting in 27 companies with a total of 81 data observations.

The results of the study show that profitability has a positive effect on firm value, while firm size has a negative effect. Conversely, audit quality has no significant effect on firm value. The adjusted R² coefficient of determination is 0,87, indicating that 87% of the variation in firm value can be explained by the three independent variables, while the remaining 13% is influenced by other factors. This study concludes that profitability significantly affects firm value, firm size negatively affects firm value, and audit quality has no effect on firm value. The findings of this research are expected to provide insights for company management, investors, regulators (OJK), and public accounting firms (KAP) in evaluating fundamental factors that influence firm value in the energy sector.

Keywords: Profitability, Firm Size, Audit Quality, Firm Value, Energy Sector