The Effect of Institutional Ownership, Financial Performance, and Sustainability Report on Firm Value in Basic Materials Sector Companies

Sarjiyono, Miftakhul Hanifah (2025) The Effect of Institutional Ownership, Financial Performance, and Sustainability Report on Firm Value in Basic Materials Sector Companies. International Journal of Applied Business & International Management (IJABIM), 10 (2). pp. 261-275. ISSN 2621-2862

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Abstract

Business activities in the basic materials
sector significantly impact stakeholders,
making information transparency a key
strategy to enhance investor perception
and company valuation. This study aims
to analyze the effect of institutional
ownership (INST), financial performance
(ROA), and sustainability report
disclosure (SRDi) on firm value,
measured by Price to Book Value (PBV).
Data were collected from annual and
sustainability reports of companies listed
on the Indonesia Stock Exchange (IDX)
for the period 2020–2023 using
purposive sampling, resulting in 62
companies and 148 usable observations
after outlier removal. The results show
that only financial performance
significantly affects firm value, with a
significance value of 0.000 (< 0.05), while
institutional ownership (sig. = 0.299) and
sustainability report disclosure (sig. =
0.798) have no significant effect.
Simultaneous testing also confirms a
significant joint influence (sig. = 0.000),
although the adjusted R-squared value is
only 0.129 (12.9%), indicating that the
independent variables collectively
explain a limited portion of firm value.
These findings suggest that investors in
this sector prioritize financial over non-
financial information. Future research is
recommended to incorporate a broader
set of variables or methodologies to
better capture the complexity of factors
influencing firm value in the basic
materials industry.
Keywords: Basic Materials Sector;
Financial Performance; Firm Value;
Institutional Ownership; Sustainability
Reporting

Item Type:	Article
Additional Information:	Miftakhul Hanifah Sarjiyono (Penulis - 142210224); Januar Eko Prasetio (Pembimbing)
Uncontrolled Keywords:	Basic Materials Sector; Financial Performance; Firm Value; Institutional Ownership; Sustainability Reporting
Subjek:	H Social Sciences > HF Commerce > HF5601 Accounting
Divisions:	Fakultas Ekonomi dan Bisnis > (S1) Akuntansi
Depositing User:	Indah Lestari
Date Deposited:	17 Dec 2025 03:16
Last Modified:	17 Dec 2025 03:16
URI:	http://eprints.upnyk.ac.id/id/eprint/46158

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