The Influence of Capital Structure, Profitability, Company Size and Dividend Policy on Firm Value With Investment Decision as a Moderator

Abstract

Aims: With investment choices serving as a moderator, this research examines the impact of capital structure, profitability, company size, and dividend policy on firm value. Study Design: This quantitative study employs purposive sampling to examine the financial data of 85 Indonesian property and real estate companies listed on the Indonesia Stock Exchange from 2019 to 2023. Place and Duration of Study: The research population comprised 85 property and real estate firms on the Indonesia Stock Exchange from 2019 to 2023. Methodology: A purposive sample of 32 firms yielded 131 data points over five years. Data analysis was conducted using SPSS, MRA analysis, and conventional assumption tests. Results: The findings indicate that capital structure and profitability positively influence firm value. Dividend policy appears to have no impact on firm value, while company size exhibits a negative relationship. Investment decisions strengthen the association between capital structure, profitability, and dividend policy with firm value, but weaken the link between company size and firm value. Conclusion: This research has theoretical and practical implications. Theoretical implications try to look in more depth at how various factors, such as capital structure, profitability, company size, and dividend policy, as well as investment decisions, jointly influence the value of a property and real estate company. For practical implications for property and real estate company management, the results of this research can be a reference in making decisions regarding capital structure, dividend policy, and investment so as to increase company value.