The Effect of Profitability and Environmental Performance on Firm Value of Islamic Commercial Banks in Indonesia

Authors

  • Farah Ivana Sekolah Tinggi Ilmu Ekonomi Sabang, Indonesia
  • Syarifah Mauli Masyithah Sekolah Tinggi Ilmu Ekonomi Sabang, Indonesia
  • Indrakesuma Sekolah Tinggi Ilmu Ekonomi Sabang, Indonesia
  • Muhammad Ridha Ramli Sekolah Tinggi Ilmu Ekonomi Sabang, Indonesia
  • Syafira Yunidar Sekolah Tinggi Ilmu Ekonomi Sabang, Indonesia
  • Ferroz Firdaus Sekolah Tinggi Ilmu Ekonomi Sabang, Indonesia

DOI:

https://doi.org/10.29040/ijebar.v9i4.18653

Abstract

This study aims to analyze the influence of profitability and environmental performance on the value of companies in Sharia Commercial Banks in Indonesia for the 2020–2023 period. Profitability is measured using Return on Assets (ROA), while environmental performance is measured by PROPER. The value of the company is proxied by the Price to Book Value (PBV). The research method used is a quantitative approach with multiple linear regression analysis. The results of the study show that profitability has a positive and significant effect on the company's value partially. Environmental performance does not have a significant effect partially, but simultaneously, profitability and environmental performance have a significant effect on the company's value. These findings confirm the importance of strengthening profitability and implementing sustainable environmental management to increase company value. This research is expected to be a reference for practitioners and academics in the development of sustainability-oriented Islamic financial management.

Downloads

Published

2025-12-31

How to Cite

Ivana, F., Masyithah, S. M., Indrakesuma, Ramli, M. R., Yunidar, S., & Firdaus, F. (2025). The Effect of Profitability and Environmental Performance on Firm Value of Islamic Commercial Banks in Indonesia. International Journal of Economics, Business and Accounting Research (IJEBAR), 9(4). https://doi.org/10.29040/ijebar.v9i4.18653

Issue

Vol. 9 No. 4 (2025): IJEBAR, VOL. 09 ISSUE 04, DECEMBER 2025

Section

Articles

Citation Check

License

Authors who publish with IJEBAR agree to the following terms: Authors retain copyright and grant the IJEBAR right of first publication with the work simultaneously licensed under a Creative Commons Attribution License (CC BY-SA 4.0) that allows others to share (copy and redistribute the material in any medium or format) and adapt (remix, transform, and build upon the material) the work for any purpose, even commercially with an acknowledgement of the work's authorship and initial publication in IJEBAR. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in IJEBAR. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).