International Journal of Accounting, Business, and Economic Policy
Vol. 1 No. 2 (2025): April

The Effect of Leverage and Profitability on Firm Value Moderated by Firm Size

Yuniep Mujati Suaidah (Accounting Department, ITEBIS PGRI Dewantara Jombang, Indonesia)
Rizka Amalia Putri (Accounting Department, ITEBIS PGRI Dewantara Jombang, Indonesia)
Sugeng Suprapto (Accounting Department, ITEBIS PGRI Dewantara Jombang, Indonesia)



Article Info

Publish Date
11 Jan 2025

Abstract

The study aimed to investigate how the leverage ratio impacts the value of a firm. It also aimed to examine how the profitability ratio affects firm value. Furthermore, the research aimed to investigate if the size of a company has any influence on how leverage affects the overall value of the firm. Additionally, the research delved into how profitability's impact on a company's worth is influenced by its size. The study utilizes a quantitative approach for analyzing the data, which will be presented in a structured format and undergo statistical analysis. The main subject of this study is the group of coal subsector businesses that are publicly traded on the Indonesia Stock Exchange between 2021 and 2023, which comprises a total of forty-three companies. The researchers used purposive sampling to choose participants for the study, ultimately collecting 48 data. The information was examined through Moderated Regression Analysis (MRA), revealing that the Debt-to-Equity Ratio (DER) negatively affects the worth of the company. The Return on Asset (ROA) does not have a noteworthy influence on firm value. The total size of assets does not influence the link between debt levels and firm value. Having a large amount of total assets may diminish the link between how profitable a company is and its overall value.

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Journal Info

Abbrev

ijabep

Publisher

Subject

Description

International Journal of Accounting, Business, and Economic Policy (E-ISSN 3109-4961) is a peer-reviewed journal that disseminates original research and critical analysis related to the fields of accounting, business, and economic policy. The journal publishes high-quality papers exploring ...