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The Effect of Capital Structure, Firm Size, and Profitability on Firm Value with Investment Decisions as Moderating

Accounting Analysis Journal · Vol. 10 No. 3 (2022) · pp. 150–157

DOI
10.15294/aaj.v10i3.50744
ISSN
2502-6216, 2252-6765
Published
2022-02-17
Publisher
Universitas Negeri Semarang
Language
eng

Abstract

The purpose of this study is to examine the effect of capital structure, firm size, and profitability on firm value with investment decisions as moderating. The population of this study was 49 various industrial sector manufacturing companies listed on the IDX in 2016-2019. Sampling using purposive sampling technique, in order to obtain a sample of 22 companies with 72 units of analysis. Data analysis was performed using the Moderated Regression Analysis (MRA) test. The results showed that profitability had a positive effect on firm value, while capital structure did not affect firm value and firm size had a negative effect on firm value. Investment decisions are able to strengthen the effect of profitability on firm value but are not able to strengthen the effect of capital structure and firm size on firm value. The conclusion of this study is that company value will increase if it has high profitability because the greater the profit the company gets, the better the company’s performance, and the company value will decrease when the larger the company size means that the bigger the company, the more difficult it is to control and supervise by company management. Meanwhile, the right investment decision increases the company’s chances of making a profit, thereby strengthening the effect of profitability in increasing firm value. Keywords: Firm Value; Capital Structure; Company Size; Profitability; Investment Decisions

Collaboration network of the authors

40 authors · 53 co-authorship links · showing the 40 most connected

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  • Bandung Islamic University
  • Mercu Buana University
  • Affiliation unknown
  • Different organisations
  • Same organisation
  • Affiliation unknown
  • Thicker line = more joint articles · bigger circle = more articles
Show as table
Co-authorOrganisationJoint articles
Surya RaharjaAffiliation unknown2
Niken Lady JunitaAffiliation unknown2
Abdul RohmanBandung Islamic University1
Ajeng Pangestuning PurwokoAffiliation unknown1
Bestari Dwi HandayaniAffiliation unknown1
Nanik Sri UtaminingsihAffiliation unknown1
Rizki Aulia RachmanAffiliation unknown1
Slamet RiyadiMercu Buana University1
Febrica Dewi ParamitaAffiliation unknown1
Mirza Nurdin NugrohoAffiliation unknown1
Rosyiqoh Haida LutfianaAffiliation unknown1
Sendyvia CandraAffiliation unknown1
Zayyinatul KhasanahAffiliation unknown1
Amanda Kyka MarharaniAffiliation unknown1
Yasin FadilAffiliation unknown1
Azizatul LaeliAffiliation unknown1
Dita MuktiningtyasAffiliation unknown1
Rizki RahmawatiAffiliation unknown1
Oki PrasantiAffiliation unknown1
Rauf Alvian PrasetyaAffiliation unknown1
Jalu Wicaksono ArdiAffiliation unknown1
Margunani MargunaniAffiliation unknown1
Siti Fiki IkmahAffiliation unknown1
Tuti OktavianiAffiliation unknown1
Azizatul FikriyahAffiliation unknown1
Sri Rizky RahayuningtyasAffiliation unknown1
Dwi LestariAffiliation unknown1
Retno Ariyani Puji LestariAffiliation unknown1
Sari WidyastutiAffiliation unknown1
Nur BarokahAffiliation unknown1
Ika WahyuningsihAffiliation unknown1
Ahmad SehabuddinAffiliation unknown1
Ahmad SaerojiAffiliation unknown1
Maylia Pramono SariAffiliation unknown1
Atik Ul MussanadahAffiliation unknown1
Mei Saputra ArumawanAffiliation unknown1
Ubaedul MustofaAffiliation unknown1
Feti Fatikhatul UzaAffiliation unknown1

Affiliations come from OpenAlex; journal OAI-PMH metadata carries none. Authors without an OpenAlex ID are matched by name, which can merge or split people.

Metadata source: OAI-PMH (metadata jurnal) https://journal.unnes.ac.id/sju/index.php/aaj/oai, first harvested 5 Nov 2026, last seen 8 Nov 2026.
Original metadata (oai_dc) 
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	<dc:title xml:lang="en-US">The Effect of Capital Structure, Firm Size, and Profitability on Firm Value with Investment Decisions as Moderating</dc:title>
	<dc:creator>Wijayaningsih, Shinta</dc:creator>
	<dc:creator>Yulianto, Agung</dc:creator>
	<dc:description xml:lang="en-US">The purpose of this study is to examine the effect of capital structure, firm size, and profitability on firm value with investment decisions as moderating. The population of this study was 49 various industrial sector manufacturing companies listed on the IDX in 2016-2019. Sampling using purposive sampling technique, in order to obtain a sample of 22 companies with 72 units of analysis. Data analysis was performed using the Moderated Regression Analysis (MRA) test. The results showed that profitability had a positive effect on firm value, while capital structure did not affect firm value and firm size had a negative effect on firm value. Investment decisions are able to strengthen the effect of profitability on firm value but are not able to strengthen the effect of capital structure and firm size on firm value. The conclusion of this study is that company value will increase if it has high profitability because the greater the profit the company gets, the better the company’s performance, and the company value will decrease when the larger the company size means that the bigger the company, the more difficult it is to control and supervise by company management. Meanwhile, the right investment decision increases the company’s chances of making a profit, thereby strengthening the effect of profitability in increasing firm value.
Keywords:&amp;nbsp;Firm Value; Capital Structure; Company Size; Profitability; Investment Decisions</dc:description>
	<dc:publisher xml:lang="en-US">Universitas Negeri Semarang</dc:publisher>
	<dc:date>2022-02-17</dc:date>
	<dc:type>info:eu-repo/semantics/article</dc:type>
	<dc:type>info:eu-repo/semantics/publishedVersion</dc:type>
	<dc:type xml:lang="en-US">Peer-reviewed Article</dc:type>
	<dc:format>application/pdf</dc:format>
	<dc:identifier>https://journal.unnes.ac.id/sju/aaj/article/view/50744</dc:identifier>
	<dc:identifier>10.15294/aaj.v10i3.50744</dc:identifier>
	<dc:source xml:lang="en-US">Accounting Analysis Journal; Vol 10 No 3 (2021): November; 150-157</dc:source>
	<dc:source>2502-6216</dc:source>
	<dc:source>2252-6765</dc:source>
	<dc:language>eng</dc:language>
	<dc:relation>https://journal.unnes.ac.id/sju/aaj/article/view/50744/21195</dc:relation>
	<dc:rights xml:lang="en-US">Copyright (c) 2022 Accounting Analysis Journal</dc:rights>
</oai_dc:dc>