Indo-Fintech Intellectuals: Journal of Economics and Business
Vol. 4 No. 6 (2024): Indo-Fintech Intellectuals: Journal of Economics and Business (2024)

Dynamics of Firm Size: Moderation Analysis of Profitability and Capital Structure in Assessing Firm Value

Suwandi, Suwandi (Unknown)



Article Info

Publish Date
10 Dec 2024

Abstract

Investors often have difficulty making careful investment policies, because they must first evaluate the company's prospects for future growth. This causal research is intended to show the extent to which profitability and capital structure can strengthen firm value through moderating firm size variables in automotive and component companies in the Indonesian capital market in 2018-2022. This study involved 12 companies determined based on a purposive sampling approach. The information for this study stems from the financial reports of the sample entities which were collected by browsing the website www.idx.co.id using a documentation approach. Furthermore, multiple linear regression techniques were applied in analyzing research data. Research reveals that firm value can be influenced by profitability and capital structure positively and significantly, while firm size has the opposite impact. However, firm size does not affect the relationship between capital structure and firm value; rather, it influences the relationship between profitability and firm value. Increasing profitability and improving capital structure are necessary to follow up on the research's composition and ensure that firm value keeps rising.

Copyrights © 2024






Journal Info

Abbrev

ifi

Publisher

Subject

Humanities Economics, Econometrics & Finance Social Sciences

Description

Indo-Fintech Intellectuals: Journal of Economics and Business (IFI-JEB) is a fully refereed (double-blind peer review) and an open-access online journal for academics, researchers, graduate students, early-career researchers and students, published by Lembaga Intelektual Muda (LIM) Maluku. IFI-JEB ...