The Role of Profitability in Mediating Financial Performance and Company Values

Abstract

This research seeks to demonstrate that profitability serves as a mediating factor in the relationship between asset growth and company value. The study population consists of companies within the Consumer Non-Cyclicals financial sector that are listed on the Indonesia Stock Exchange during the period 2019-2023. A purposive sampling approach was employed, resulting in a sample of 28 companies. Data analysis was conducted using WarpPLS version 8.0. The findings reveal that profitability successfully acts as a complete mediator in the relationship between asset growth and firm value.