Quantitative analysis shows that current ratio and debt to equity ratio influence company value through return on assets in the mining sector.
Investors' perceptions of a company's success, known as company value, are generally reflected in stock prices on the capital market. This study was conducted due to inconsistencies between theory and empirical data, whereby increases in CR or ROA do not always correlate with increases in PER. Using a quantitative approach, secondary data analysis of nine companies was conducted using panel data regression, path analysis, and Sobel tests. The results show that CR and DER do not affect ROA, but all three individually affect PER. Simultaneously, these four variables have a significant effect on PER, with ROA proven to be a mediator. The managerial conclusion is that companies must maintain a balance between CR and DER to increase PER and investor confidence, because ROA mediates the effect of DER on PER, emphasizing the importance of efficient debt management.
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Reyzan et al. (2025) studied this question.
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