The Role of Company Size Moderating the Effect of Capital Structure and Profitability to Firm Value in Consumer Non-Cyclicals Businesses on the Indonesian Stock Exchange

Abstract

Aims: Study this is about the firm value, aiming to test company size to moderate the influence of capital structure and profitability on the firm value in consumer non-cyclical business listed on the Indonesia Stock Exchange (IDX). Study Design:  The design of this research study is correlational. Place and Duration of Study: Consumer non-cyclical business on the Indonesia Stock Exchange (IDX) issuers in 2018-2022. Methodology: This study's population was 122 non-cyclical consumer companies listed on the Indonesia Stock Exchange from 2018 to 2022. From the population, a sample of 56 was selected based on the purposive sampling method with 5 years of observation (2018-2022), so the number of samples was 280. However, there were 18 outlier data, so the final sample was 262. Data were collected using documentary methods and analyzed using a quasi-moderation model, which was processed with SPSS 24. Results: The study's results indicate that company size can moderate the effect of capital structure and profitability on company value. This means that capital structure and profitability on a larger company scale can strengthen the increase in company value. However, partially or individually, company size, capital structure, and profitability do not affect company value. Conclusion: The top-based results of the contribution study support the signalling theory and prove that empirical improvement in the size of a company can moderately influence the capital structure and profitability on increased firm value.