Abstract:
The capital market is an effective means to accelerate national development through longterm fundraising that is channeled to the productive sector. Companies that go public reflect
their value through the price of the shares traded, thus attracting investors to invest capital
in order to achieve maximum returns. This study focuses on the influence of company
performance on stock returns as measured using financial ratios such as ROA, PER, QAI,
DER, NPM, EPS, and EVA on telecommunications sector companies on the Indonesia Stock
Exchange during the period 2017–2021. In addition, the implementation of ESG
(Environmental, Social, and Governance)-based investments is also the main highlight in
increasing company value in a sustainable manner. ESG encourages transparency and
corporate sustainability in line with the Sustainable Development Goals (SDGs). The results
show that the company's performance measured by various financial ratios has a diverse
relationship with stock returns, indicating the need for an integrated strategy between
financial performance and company sustainability to attract investors while increasing the
company's competitiveness in the capital market.
