The Impact of Dividend Policy, Green Finance, and Profitability on Firm Value in the Energy and Infrastructure Sectors
Abstract
This study aims to examine the effects of Green Finance, Dividend Policy, and Profitability on Firm Value in energy and infrastructure companies listed on the Indonesia Stock Exchange during the 2022–2024 period. A quantitative approach was employed using multiple linear regression analysis on 11 companies selected based on the availability of financial statements and sustainability reporting data. The findings indicate that a company's ability to generate profits makes a significant positive contribution to its market valuation, consistent with theoretical frameworks emphasizing financial performance and managerial signaling. These results support the view that management's efficiency in utilizing shareholders' equity enhances market confidence and increases firm value (Risman & Subhani, 2021).
In contrast, Dividend per Share (DPS) and ESG Score were not found to have a significant effect on firm value. Although the bird-in-the-hand theory suggests that dividends serve as a positive signal to investors (Lintner, 1956), in capital-intensive sectors investors tend to place greater value on growth strategies driven by earnings reinvestment (Risman, 2021). Likewise, ESG Score has not yet become a primary determinant of investor decision-making, despite the widely recognized role of sustainability practices in strengthening risk management and enhancing long-term corporate reputation (Gustanto & Risman, 2025). This study recommends that companies continue to prioritize profitability improvement while strategically integrating green finance practices to create sustainable value. Furthermore, the findings provide opportunities for developing a more holistic firm valuation model by synergistically incorporating both financial and non-financial factors.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2026 Jurnal Ilmu Ekonomi dan Sosial (JIES)
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Author(s) Rights
As a journal author, you have rights for a large range of uses of your article, including use by your employing institute or company. These Author rights can be exercised without the need to obtain specific permission. Authors publishing in Jurnal Ilmu Ekonomi dan Sosial (JIES) journals have wide rights to use their works for teaching and scholarly purposes without needing to seek permission, including use for classroom teaching by Author or Author's institution and presentation at a meeting or conference and distributing copies to attendees; use for internal training by author's company; distribution to colleagues for their research use; use in a subsequent compilation of the author's works; inclusion in a thesis or dissertation; reuse of portions or extracts from the article in other works (with full acknowledgment of final article); preparation of derivative works (other than commercial purposes) (with full acknowledgment of final article); voluntary posting on open web sites operated by author or author’s institution for scholarly purposes (should follow CC by SA License).
Authors can copy and redistribute the material in any medium or format, as well as remix, transform, and build upon the material for any purpose, even commercially, but they must give appropriate credit (cite to the article or content), provide a link to the license, and indicate if changes were made. If you remix, transform or build upon the material, you must redistribute your contributions under the same license as the original.
Retained Rights/Terms and Conditions
Although authors are permitted to re-use all or portions of the Work in other works, this does not include granting third-party requests for reprinting, republishing, or other types of re-use.
Copyright Transfer Agreement (for Publishing)
The Authors submitting a manuscript do so on the understanding that if accepted for publication, copyright publishing of the article shall be assigned/transferred to Jurnal Ilmu Ekonomi dan Sosial (JIES) of Universitas Mercu Buana as Publisher of the journal. Upon acceptance of an article, authors will be asked to complete a 'Copyright Transfer Agreement' (see more information on this). An e-mail will be sent to the corresponding author confirming receipt of the manuscript together with a 'Copyright Transfer Agreement' form by the online version of this agreement.
Jurnal Ilmu Ekonomi dan Sosial (JIES) of Universitas Mercu Buana, the Editors and the Advisory Editorial Board make every effort to ensure that no wrong or misleading data, opinions or statements be published in the journal. In any way, the contents of the articles and advertisements published in the Jurnal Ilmu Ekonomi dan Sosial (JIES) are sole and exclusive responsibility of their respective authors and advertisers.
Remember, even though we ask for a transfer of copyright, our journal authors retain (or are granted back) significant scholarly rights as mention before.
The Copyright Transfer Agreement (CTA) Form can be downloaded here:
[Copyright Transfer Agreement (CTA) Form Jurnal Ilmu Ekonomi dan Sosial (JIES)]
The copyright form should be signed electronically and send to the Editorial Office in the form of original e-mail below:
Editorial Office of Jurnal Ilmu Ekonomi dan Sosial (JIES)
Pusat Penelitian Universitas Mercu Buana Jakarta, Gedung D Lantai 1,
Jalan Meruya Selatan No. 01, Kembangan, Jakarta Barat 11650.
Phone 021-5840816 Extention 3451 Fax. 021-5840813.
Homepage : http://www.mercubuana.ac.id Email : [email protected].
All off articles in the Jurnal Ilmu Ekonomi dan Sosial (JIES) are licensed under CC BY-SA
Jurnal Ilmu Ekonomi dan Sosial (JIES) and the article sare licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
