The Effect of Profitability and Investment Decisions on Firm Value with Capital Structure as a Moderating Variable: Case Study on Food and Beverage Sub-Sector Manufacturing Companies Listed on the IDX 2018-2022

Nur Anisah (Accounting Study Program, ITEBIS PGRI Dewantara Jombang, Indonesia)
Deni Widyo Prasetyo (Management Study Program, ITEBIS PGRI Dewantara Jombang, Indonesia)
Shella Utria Wati (Accounting Study Program, ITEBIS PGRI Dewantara Jombang, Indonesia)

International Journal of Accounting, Business, and Economic Policy
Vol. 1 No. 1 (2025): January

This study aims to investigate how a firm's worth is influenced by its profits and investment choices, where the capital structure serves as a moderating factor. This research adopts a quantitative method and relies on existing data for gathering information. The sampling technique employed is purposive sampling. Based on the criteria, 16 samples were obtained from 16 food and beverage sub-sector manufacturing companies registered on the IDX in 2018-2022, so that 80 data were obtained. Profitability is proxied by ROA, investment decisions are proxied by PER, company value is proxied by PBV, and capital structure is proxied by DAR. The research utilized a technique called multiple linear regression combined with Moderated Regression Analysis (MRA) through the SPSS version 26 software. Results of the study suggest that company worth is enhanced by both profitability and investment choices. The value of a company can be influenced by its capital structure, which in turn, can impact how profitable it is and the decisions it makes regarding investments.