The Effect of Liquidity, Leverage and Profitability on Firm Value with Firm Size as Moderating Variable
Leni Yuliyanti, Ikaputera Waspada, Maya Sari, Nugraha

School of Postgraduates
Universitas Pendidikan Indonesia
Bandung, Jawa Barat, Indonesia 40154

Abstract

Abstract

The purpose of this study was to determine the effect of liquidity, leverage and profitability on firm value with firm size as the moderating variable. This research uses descriptive verification method. The population in this study is the mining sector companies listed on the Indonesia Stock Exchange with a total of 77 companies, and 40 companies is obtained as samples with purposive sampling technique. The data used is sourced from the 2013-2018 financial statements. The analysis technique uses MRA analysis. The results showed that liquidity and profitability had no effect on firm value. Leverage has a positive effect on the company. And firm size does not moderate the liquidity and profitability of the company but moderates the effect of leverage on firm value. This shows that leverage is a positive signal that is responded to by investors so that it will increase the value of the company.

Keywords: liquidity, leverage, profitability, firm value, firm size

Topic: Financial Management and Accounting