KnE Social Sciences

Published date: Sep 17 2025

Journal Title: KnE Social Sciences

Issue title: The Mercu Buana Ecobiz Energy International Conference: Innovation and Operational Efficiency in Energy Business

Pages: 116 - 125

DOI: 10.18502/kss.v10i22.19742

Mohammad YasinMagister of Management, Faculty of Economics & Business, Universitas Mercu Buana, Jakarta

Asep Rismanasep.risman@mercubuana.ac.idMagister of Management, Faculty of Economics & Business, Universitas Mercu Buana, Jakarta

Coal is still the main, cheap source of energy, and coal energy sources depend on coal companies that supply the coal needs. The success and interest in investing in coal companies can be seen from the development of the company’s value, but many factors influence the firm’s value. This study aims to find empirical evidence of the effect of reference coal prices, capital structure, and sales growth on a firm’s value mediated by profitability. It uses a causal quantitative method using a path analysis model. The study population was all coal companies listed on the Indonesia Stock Exchange (IDX) from 2018 to 2022, totaling 18 companies, with data processing using EViews. The results showed that reference coal prices and sales growth did not have a significant effect on the firm’s value, while capital structure and profitability had a significant positive effect. In addition, reference coal prices, capital structure, and sales growth had a significant and positive effect on profitability. Profitability mediates the effect of reference coal prices and capital structure on a firm’s value, but does not mediate the effect of sales growth on a firm’s value. Therefore, coal companies should pay more attention to optimizing capital structure and reference coal prices to increase profitability and corporate value, so that investment in coal companies remains profitable. This, in turn, will help maintain coal supply as a primary and cost-effective energy source that is very important for driving economic development and public welfare.

Keywords: energy firm’s value, coal prices, capital structure, sales growth, profitability

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