Examining the Moderating Effect of Company Size on the Relationship Between Financial Performance, Capital Structure, and Firm Value

Homaira Binte Halim; Md. Shihab Sharar Oyon, Mumit Ahmed


Utilizing company size as a moderating variable, this research seeks to explore the correlation between capital structure, financial performance, and business value. The study employs purposive sampling as a quantitative research data collection strategy, utilizing secondary data extracted from the financial accounts of manufacturing businesses in the consumer products industry sector listed on the Indonesia Stock Exchange from 2020 to 2023. Modified Regression Analysis (MRA) serves as the chosen method for data analysis. The results indicate that financial performance does not impact firm value, and similarly, capital structure does not influence firm value. Furthermore, the study reveals that business size does not have a significant effect on firm value. However, the influence of financial performance on company value remains unaffected by business size, while the impact of capital structure on business value can be moderated by firm size.

FULL TEXT PDF 1-6] DOI: 10.30566/ijo-bs/2023.12.117

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