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

International Journal of Business Society, Vol. 7, Issue 8
Homaira Binte HalimMd. Shihab Sharar OyonMumit Ahmed
financial performancecapital structuresizecompany valueIndonesia stock exchange
PDFRegular IssueDOI: 10.30566/ijo-bs/2023.12.117
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Abstract

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.

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Article Information

Article Details
Volume & IssueVol. 7, Iss. 8
Publication DateDec 17, 2023
Authors
Homaira Binte Halim
Md. Shihab Sharar Oyon
Mumit Ahmed
DOI
10.30566/ijo-bs/2023.12.117
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Examining the Moderating Effect of Company Size on the Relationship Between Financial Performance, Capital Structure, and Firm Value | International Journal of Business Society