The Effect of Intellectual Capital and Capital Structure on Financial Performance (A Study of Energy Companies Listed on the Indonesia Stock Exchange 2019-2023 Period)

I Made Krisna Dwi Satria Putra Adisu; I Nyoman Nugraha Ardana Putra

doi:10.55927/eajmr.v4i5.170

Authors

I Made Krisna Dwi Satria Putra Adisu University of Mataram
I Nyoman Nugraha Ardana Putra University of Mataram

DOI:

https://doi.org/10.55927/eajmr.v4i5.170

Keywords:

Stock returns, Financial ratios, Energy sector Indonesia, Return on assests (ROA), Debt to equity ratio (DER).

Abstract

This research seeks to investigate effect of return on assets (ROA), debt to equity ratio (DER), current ratio (CR), and firm size on stock returns, contributing to empirical insights in the Indonesian energy sector. Using a quantitative approach with panel data regression, the study observes 10 energy firms registered on the IDX 2019 to 2023, chosen based on purposive a sample selection method. The data were analyzed after classical assumption testing to ensure model validity. The results show that ROA and DER significantly affect stock returns, while CR and firm size do not. These findings highlight the importance of profitability and capital structure in influencing investor decisions within the energy industry.

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