Sustainable Growth Rate as A Mediator of Financialand ‎Macroeconomic Effects on The Stock PricePerformance in Islamic ‎Firms

  • Authors

    • Hastuti Haluoleo University ‎Universitas Muhammadiyah Buton Doctoral Student in Management Science, Postgraduate Program, Haluoleo University
    • Buyung Sarita Haluoleo University
    • Intihanah Haluoleo University
    • Salma Saleh Haluoleo University
    https://doi.org/10.14419/8g1a7336

    Received date: December 4, 2025

    Accepted date: December 26, 2025

    Published date: January 4, 2026

  • Capital Structure; Dividend Policy; Islamic Firms; Macroeconomic Indicators; Stock Price Performance; Sustainable Growth Rate

  • Abstract

    This study examines the impact of firm‐specific financial factors and macroeconomic conditions on the stock price performance of Islamic ‎firms listed on the Indonesia Stock Exchange by incorporating the Sustainable Growth Rate (SGR) as a mediating variable. The inclusion of ‎SGR addresses an important gap in prior Islamic finance literature, which has largely emphasized direct relationships between financial ‎indicators and stock prices while overlooking the internal growth mechanism that links corporate policies to market valuation. Given the ‎Sharia‐based restrictions on excessive leverage and speculative activities, sustainable internal growth is expected to play a central role in ‎shaping stock performance in Islamic capital markets. This research employs an explanatory quantitative design using panel data from 20 ‎non‐financial Sharia‐compliant firms over the 2019–2024 period. Capital structure, dividend policy, profitability, operational efficiency, firm ‎size, inflation, and gross domestic product (GDP) are specified as independent variables, while stock price performance is proxied by the ‎Price to Book Value (PBV). Panel data regression analysis is conducted using the Random Effects Model (REM), selected based on the ‎Chow test, Hausman test, and Lagrange Multiplier test. The mediating role of SGR is subsequently evaluated through Sobel testing.‎

    The empirical findings indicate that dividend policy, profitability, and operational efficiency have a positive and statistically significant effect ‎on stock price performance, confirming the dominant role of internal financial fundamentals in Islamic equity valuation. In contrast, capital ‎structure, firm size, inflation, and GDP do not exhibit significant direct effects, suggesting limited short‐term transmission of leverage and ‎macroeconomic conditions into market prices. Mediation analysis further reveals that SGR significantly mediates the influence of capital ‎structure and dividend policy on stock price performance, while no mediating effect is observed for profitability, efficiency, firm size, ‎inflation, or GDP. Overall, this study concludes that internal financial policies and sustainable growth capacity are more decisive ‎determinants of Islamic stock price performance than external macroeconomic factors. The findings contribute to the literature by extending ‎sustainable growth theory within an Islamic finance framework and provide practical implications for managers, investors, and regulators ‎seeking to enhance long‐term value creation and financial resilience in Sharia‐compliant capital markets‎.

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  • How to Cite

    Hastuti, Sarita , B. ., Intihanah, & Saleh, S. . (2026). Sustainable Growth Rate as A Mediator of Financialand ‎Macroeconomic Effects on The Stock PricePerformance in Islamic ‎Firms. International Journal of Accounting and Economics Studies, 12(8), 1014-1022. https://doi.org/10.14419/8g1a7336