The Influence of Return on Assets (ROA) and Firm Size on Company Value

This study aims to analyze the influence of Return on Assets (ROA) and firm size on company value, measured using Economic Value Added (EVA), in Islamic banking in Indonesia during the period 2020–2023. The research employs a quantitative approach with multiple linear regression analysis, utilizing secondary data obtained from the annual financial reports of Islamic banking companies that meet the sample criteria. The results indicate that ROA has a positive and significant effect on company value, suggesting that the higher a company's ability to generate profit from its total assets, the greater the economic value added created. Conversely, firm size does not significantly affect company value, indicating that the scale of a company's assets does not directly determine the level of economic value creation. Simultaneously, the variables ROA and firm size significantly influence company value with a coefficient of determination of 50.6%, indicating that these two variables can explain more than half of the variation in company value. These findings have important implications for Islamic banking management to focus strategies on enhancing profitability through efficient asset utilization and to use EVA as a primary indicator in strategic decision-making.