The Effect of Profitability, Liquidity, and Firm Size on Firm Value with Capital Structure as a Moderating Variable

Abstract

This study aims to examine the effect of profitability, liquidity, and firm size on firm value, with capital structure serving as a moderating variable, in manufacturing companies listed on the Indonesia Stock Exchange (IDX) during the 2020–2024 period. This research employs a quantitative approach using secondary data obtained from annual financial statements. The research population consists of 50 manufacturing companies listed on the IDX. The sample was selected using purposive sampling, resulting in 35 companies with a total of 175 observations. The data analysis techniques used include multiple linear regression analysis and Moderated Regression Analysis (MRA), facilitated by SPSS software. The results indicate that profitability, liquidity, and firm size have a positive and significant effect on firm value. Furthermore, capital structure is proven to successfully moderate and strengthen the effect of profitability on firm value, while it does not moderate the relationship between liquidity and firm value, nor between firm size and firm value.