Financial Performance and Company Value: Systematic Literature Review
Keywords:
Financial Performance, Company Value, ROA
Abstract
This article aims to conduct a systematic literature review of empirical and theoretical studies in the last five years (2020–2024) which discuss the relationship between financial performance and company value in various countries. This research summarizes the most commonly used financial performance indicators, such as ROA, ROE, EPS, and NPM, and evaluates their contribution to company value. In addition, this article analyzes the consistency and variation of research results based on methodology, geographic location, industry type, and theoretical approaches such as signal, agency, and stakeholder theory. The literature selection process is carried out through leading databases (Scopus, Web of Science, Pro Quest) with certain inclusion criteria. The results of the review show that internal factors such as CSR, ESG, green innovation, and risk management generally have a positive influence on company performance and value, depending on the context in which they are applied. It is hoped that this article will become a critical and useful reference for future researchers in developing similar studies.
References
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Asni, N., & Agustia, D. (2022). The mediating role of financial performance in the relationship between green innovation and firm value: Evidence from ASEAN countries. European Journal of Innovation Management, 25(5), 1328–1347. https://doi.org/10.1108/EJIM-11- 2020-0459
Baby, A., Mia, M. A., & Pitchay, A. A. (2024). A systematic review of financial performance in the manufacturing industry. Future Business Journal, 10(1), 1–20. https://doi.org/10.1186/s43093-024-00353-1
Bayer, E., Srinivasan, S., Riedl, E. J., & Skiera, B. (2020). The impact of online display advertising and paid search advertising relative to offline advertising on firm performance and firm value. International Journal of Researin Marketing, 37(4), 789–804. https://doi.org/10.1016/j.ijresmar.2020.02.002
Chairani, C., & Siregar, S. V. (2021). The effect of enterprise risk management on financial performance and firm value: The role of environmental, social and governance performance. Meditari Accountancy Research, 29(3), 647–670. https://doi.org/10.1108/MEDAR-09-2019-0549
Dieste, M., Panizzolo, R., & Garza-Reyes, J. A. (2021). A systematic literature review regarding the influence of lean manufacturing on firms’ financial performance. Journal of Manufacturing Technology Management, 32(9), 101–121. https://doi.org/10.1108/JMTM- 08-2020-0304
Ferriswara, D., Sayidah, N., & Buniarto, E. A. (2022). Do corporate governance, capital structure predict financial performance and firm value? (Empirical study of Jakarta Islamic Index). Cogent Business and Management, 9(1). https://doi.org/10.1080/23311975.2022.2147123
Hariyani, D. S., Ratnawati, T., & Rahmiyati, N. (2021). The relationship between company value and good financial governance: Empirical evidence from Indonesia. Journal of Asian Finance, Economics and Business, 8(7), 447–456. https://doi.org/10.13106/jafeb.2021.vol8.no7.0447
Hermawan, S., Rokhmania, N., Rahayu, R. A., Qonitah, I., & Nugraheni, R. (2021). Financial performance mediates the relationship of intellectual capital to firm value in Indonesian banking companies. International Journal of Research in Business and Social Science (2147-4478), 10(6), 181–188. https://doi.org/10.20525/ijrbs.v10i6.1345
Lusiana, M., Haat, M. H. C., Saputra, J., Yusliza, M. Y., Muhammad, Z., & Bon, A. T. (2021). A review of green accounting, corporate social responsibility disclosure, financial performance and firm value literature. Proceedings of the International Conference on Industrial Engineering and Operations Management, 5622–5640.
Nikmah, C., & Hung, R. J. (2024). The impact of ASEAN economic community, firm characteristics and macroeconomics on firm performance and firm value: An investigation of Shariah-compliant firms in Indonesia. Heliyon, 10(11), e32740. https://doi.org/10.1016/j.heliyon.2024.e32740
Puspita, D. A., & Christianto, A. (2021). Analisis kinerja keuangan terhadap nilai perusahaan dengan corporate social responsibility sebagai variabel moderasi. Bulletin of Management and Business, 2(2), 151–159. https://doi.org/10.31328/bmb.v2i2.157
Rahman, M. M., & Howlader, M. S. (2022). The impact of research and development expenditure on firm performance and firm value: Evidence from a South Asian emerging economy. Journal of Applied Accounting Research, 23(4), 825–845. https://doi.org/10.1108/JAAR-07-2021-0196
Rizkhyana, B., Kartasari, S. F., & Malinda, S. (2022). Determinants of firm value. IJEBD (International Journal of Entrepreneurship and Business Development), 5(2), 332–338. https://doi.org/10.29138/ijebd.v5i2.1776
Rjiba, H., Jahmane, A., & Abid, I. (2020). Corporate social responsibility and firm value: Guiding through economic policy uncertainty. Finance Research Letters, 35, 101553. https://doi.org/10.1016/j.frl.2020.101553
Robiyanto, R., Putra, A. R., & Lako, A. (2021). The effect of corporate governance and intellectual capital toward financial performance and firm value of socially responsible firms. Contaduría y Administración, 66(1), 1–24. https://doi.org/10.22201/fca.24488410e.2021.2489
Sulistiyowati, L. N. (2021). Financial performance as a moderating variable between intellectual capital factors and manufacturing company value. Widya Cipta: Jurnal Sekretari dan Manajemen, 5(2), 90–99.
Tarigan, Y., Ramadhani, D. S., Firmansyah, A., Ikhsan, M., Prodi, W. D., STAN, P. K. N., & Selatan, T. J. (2022). Hubungan kinerja keuangan perusahaan dan nilai perusahaan. Studi Akuntansi dan Keuangan Indonesia, 5(1), 38–60. http://www.idx.co.id
Abdi, Y., Li, X., & Càmara-Turull, X. (2022). Exploring the impact of sustainability (ESG) disclosure on firm value and financial performance (FP) in airline industry: The moderating role of size and age. Environment, Development and Sustainability, 24(4), 5052–5079. https://doi.org/10.1007/s10668-021-01649
Alfalah, A. A., Muneer, S., & Hussain, M. (2022). An empirical investigation of firm performance through corporate governance and information technology investment with mediating role of corporate social responsibility: Evidence from Saudi Arabia telecommunication sector. Frontiers in Psychology, 13, 1–11. https://doi.org/10.3389/fpsyg.2022.959406
Amimakmur, S. A., Rahayu, S. M., Damayanti, C. R., & Hutahayan, B. (2024). A systematic literature review: Determinant of company value in financial companies. WSEAS Transactions on Business and Economics, 21, 475–487. https://doi.org/10.37394/23207.2024.21.40
Amimakmur, S. A., Rahayu, S. M., Damayanti, C. R., & Hutahayan, B. (2024). A systematic literature review: Determinant of company value in financial companies. WSEAS Transactions on Business and Economics, 21, 475–487. https://doi.org/10.37394/23207.2024.21.40
Asni, N., & Agustia, D. (2022). The mediating role of financial performance in the relationship between green innovation and firm value: Evidence from ASEAN countries. European Journal of Innovation Management, 25(5), 1328–1347. https://doi.org/10.1108/EJIM-11- 2020-0459
Baby, A., Mia, M. A., & Pitchay, A. A. (2024). A systematic review of financial performance in the manufacturing industry. Future Business Journal, 10(1), 1–20. https://doi.org/10.1186/s43093-024-00353-1
Bayer, E., Srinivasan, S., Riedl, E. J., & Skiera, B. (2020). The impact of online display advertising and paid search advertising relative to offline advertising on firm performance and firm value. International Journal of Researin Marketing, 37(4), 789–804. https://doi.org/10.1016/j.ijresmar.2020.02.002
Chairani, C., & Siregar, S. V. (2021). The effect of enterprise risk management on financial performance and firm value: The role of environmental, social and governance performance. Meditari Accountancy Research, 29(3), 647–670. https://doi.org/10.1108/MEDAR-09-2019-0549
Dieste, M., Panizzolo, R., & Garza-Reyes, J. A. (2021). A systematic literature review regarding the influence of lean manufacturing on firms’ financial performance. Journal of Manufacturing Technology Management, 32(9), 101–121. https://doi.org/10.1108/JMTM- 08-2020-0304
Ferriswara, D., Sayidah, N., & Buniarto, E. A. (2022). Do corporate governance, capital structure predict financial performance and firm value? (Empirical study of Jakarta Islamic Index). Cogent Business and Management, 9(1). https://doi.org/10.1080/23311975.2022.2147123
Hariyani, D. S., Ratnawati, T., & Rahmiyati, N. (2021). The relationship between company value and good financial governance: Empirical evidence from Indonesia. Journal of Asian Finance, Economics and Business, 8(7), 447–456. https://doi.org/10.13106/jafeb.2021.vol8.no7.0447
Hermawan, S., Rokhmania, N., Rahayu, R. A., Qonitah, I., & Nugraheni, R. (2021). Financial performance mediates the relationship of intellectual capital to firm value in Indonesian banking companies. International Journal of Research in Business and Social Science (2147-4478), 10(6), 181–188. https://doi.org/10.20525/ijrbs.v10i6.1345
Lusiana, M., Haat, M. H. C., Saputra, J., Yusliza, M. Y., Muhammad, Z., & Bon, A. T. (2021). A review of green accounting, corporate social responsibility disclosure, financial performance and firm value literature. Proceedings of the International Conference on Industrial Engineering and Operations Management, 5622–5640.
Nikmah, C., & Hung, R. J. (2024). The impact of ASEAN economic community, firm characteristics and macroeconomics on firm performance and firm value: An investigation of Shariah-compliant firms in Indonesia. Heliyon, 10(11), e32740. https://doi.org/10.1016/j.heliyon.2024.e32740
Puspita, D. A., & Christianto, A. (2021). Analisis kinerja keuangan terhadap nilai perusahaan dengan corporate social responsibility sebagai variabel moderasi. Bulletin of Management and Business, 2(2), 151–159. https://doi.org/10.31328/bmb.v2i2.157
Rahman, M. M., & Howlader, M. S. (2022). The impact of research and development expenditure on firm performance and firm value: Evidence from a South Asian emerging economy. Journal of Applied Accounting Research, 23(4), 825–845. https://doi.org/10.1108/JAAR-07-2021-0196
Rizkhyana, B., Kartasari, S. F., & Malinda, S. (2022). Determinants of firm value. IJEBD (International Journal of Entrepreneurship and Business Development), 5(2), 332–338. https://doi.org/10.29138/ijebd.v5i2.1776
Rjiba, H., Jahmane, A., & Abid, I. (2020). Corporate social responsibility and firm value: Guiding through economic policy uncertainty. Finance Research Letters, 35, 101553. https://doi.org/10.1016/j.frl.2020.101553
Robiyanto, R., Putra, A. R., & Lako, A. (2021). The effect of corporate governance and intellectual capital toward financial performance and firm value of socially responsible firms. Contaduría y Administración, 66(1), 1–24. https://doi.org/10.22201/fca.24488410e.2021.2489
Sulistiyowati, L. N. (2021). Financial performance as a moderating variable between intellectual capital factors and manufacturing company value. Widya Cipta: Jurnal Sekretari dan Manajemen, 5(2), 90–99.
Tarigan, Y., Ramadhani, D. S., Firmansyah, A., Ikhsan, M., Prodi, W. D., STAN, P. K. N., & Selatan, T. J. (2022). Hubungan kinerja keuangan perusahaan dan nilai perusahaan. Studi Akuntansi dan Keuangan Indonesia, 5(1), 38–60. http://www.idx.co.id
Published
2025-11-27
How to Cite
Argianov Ramadhan, Enggar Diah Puspa Asum, & Wiralestari. (2025). Financial Performance and Company Value: Systematic Literature Review. International Journal of Economics, Business and Innovation Research, 4(06), 853-866. https://doi.org/10.63922/ijebir.v4i06.2580
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