The Role of Leverage as A Mediating Influence Between Profitability and Firm Size on Firm Value

Herda; Tubagus Ismail; Wulan Retnowati

doi:10.55927/ijems.v2i3.9686

Authors

Herda Universitas Sultan Agung Tirtayasa
Tubagus Ismail Universitas Sultan Agung Tirtayasa
Wulan Retnowati Universitas Sultan Agung Tirtayasa

DOI:

https://doi.org/10.55927/ijems.v2i3.9686

Keywords:

Profitability, Firm Size, Leverage, Firm Value

Abstract

This research is conducted to investigate the influence of Profitability and Firm Size on Firm Value using Leverage as a variable of mediating. This research employs a quantitative approach and secondary data. The population consists of industrial sector companies listed on the Indonesia Stock Exchange Index Classification (BEI-IC) during the 2018-2022 period, with a sample selected using purposive random sampling, totaling 110 companies. The data is analyzed using multiple linear regression analysis The outcomes of this research are (1) Profitability gives a significant effect on Leverage. (2) Firm Size leaves out a significant effect on Leverage. (3) Profitability constructs a significant effect on Firm Value. (4) Firm Size does not have a significant effect on Firm Value. (5) Leverage has a significant effect on Firm Value. (6) Leverage works as a mediating variable between the significant influence of profitability on firm value. (7) Leverage as a mediating variable between the significant influence of firm size on firm value

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