THE MODERATING ROLE OF FIRM SIZE ON THE EFFECT OF ENVIRONMENTAL DISCLOSURE, FOREIGN OWNERSHIP AND PROFITABILITY ON FIRM VALUE IN MANUFACTURING COMPANIES

Abstract

This study aims to analyze the effect of environmental disclosure, foreign ownership and profitability on firm value with firm size as a moderating variable. This study uses quantitative methods by taking a population of manufacturing companies listed on the Indonesia Stock Exchange (IDX). The sample was selected using purposive sampling technique so that a sample of 43 manufacturing companies was obtained. To analyze the data, EViews 12 test tool was used, with panel data regression analysis and moderation regression analysis (MRA). The results showed that profitability has a significant positive effect on firm value and foreign ownership has a significant negative effect on firm value. However, environmental disclosure has no significant effect on firm value. The moderating role of firm size on the relationship between foreign ownership and profitability with firm value is confirmed by empirical research. The proven moderation test result is that firm size significantly moderates the relationship between foreign ownership and profitability with firm value. The results of the moderation test of firm size do not moderate the relationship between environmental disclosure and firm value.