The Moderation Role of Capital Structure in Increasing Company Value
Riana Sitawati *
STIE Dharmaputra Semarang, Central Java, Indonesia.
Bagus Kusuma Ardi
STIE Dharmaputra Semarang, Central Java, Indonesia.
Agus Pitoyo
AMIK Jakarta Teknologi Cipta, Semarang, Central Java, Indonesia.
*Author to whom correspondence should be addressed.
Abstract
Aims: To test capital structure moderates influence size company and profitability to value companies in the property and real estate business listed on the Indonesia Stock Exchange (IDX).
Study Design: Moderating.
Place and Duration of Study: The property and real estate business listed on the Indonesia Stock Exchange (IDX) in the year 2021-2022.
Methodology: Population study This property and real estate business is listed on the Indonesia Stock Exchange; in 2021, there will be 76 companies, and in 2022, there will be 85 companies, totalling 161. As for the sample determined based on the method census, however, there were 45 outlier data after the Normality test, so the sample end is 116. Data was collected with method documentation and analysis using a pure moderation model with processed SPSS 24.
Results: The size of a company and its profitability have a positive significance on the company's value, and the capital structure can moderately influence the size and profitability of a company.
Conclusion: The contribution of this research supports signalling theory and business policy in increasing company value through increasing company size and profitability, which is leveraged with an optimal capital structure.
Keywords: Size, profitability, capital structure, value company