THE EFFECTS OF GOODWILL AND PROFITABILITY RATIO ON FIRM VALUE: A CASE STUDY OF PT GOTO GOJEK TOKOPEDIA TBK IN 2022-2023

Authors

  • Sastaviyana Yuliangga Accounting Study Program, Universitas Terbuka, Indonesia
  • Dwi Fitra Arreski Accounting Study Program, Universitas Terbuka, Indonesia

Keywords:

Firm Value, Profitability Ratio, Return on Assets, Tobin's Q, Goodwill

Abstract

The purpose of this research is to explore the effect of the goodwill and profitability ratios, as evaluated by ROA, on the firm value of PT GoTo Gojek Tokopedia Tbk during 2022-2023, use Tobin's Q to firm’s value measured. Goodwill represents an intangible asset reflecting market confidence in the company's potential, while ROA indicates profitability efficiency. The data were obtained from the quarterly financial reports held by Indonesia Stock Exchange-listed PT GoTo Gojek Tokopedia Tbk since its IPO in April 2022, and subjected to linear regression analysis methods with the assistance of SPSS software. The findings demonstrate that ROA significantly impacts firmvalue, whereas goodwill does not significantly affect firm value. These findings are best explained by signaling theory, which highlights how information regarding profitability and risk communicated by the company impacts investors' perceptions of firm value.

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Published

2024-12-30

Issue

Vol. 1 No. 1 (2024): Reguler Issue ISCEBE

Section

Articles