The Effects of Financial Variables on Firm Value: The Moderating Role of Capital Structure
Ainia Ayu Silvia
Department of Management, UPN “Veteran” East Java, Surabaya, Indonesia.
Yuniningsih Yuniningsih *
Department of Management, UPN “Veteran” East Java, Surabaya, Indonesia.
*Author to whom correspondence should be addressed.
Abstract
This study aims to analyze the effect of investment decisions, dividend policies, and sales growth on firm value, with capital structure as a moderating variable. The background of this study is the fluctuation in firm value in the Food and Beverage sector listed on the Indonesia Stock Exchange (IDX), which shows market performance instability despite relatively stable demand. The study uses a quantitative approach with secondary data obtained from the companies' annual financial reports for the 2021–2024 period. The sample selection was conducted using purposive sampling based on companies that consistently published financial reports throughout the period. Data analysis was performed using multiple linear regression and moderation tests after undergoing a series of classical assumption tests. The results show that investment decisions have a positive but insignificant effect on firm value. Conversely, dividend policy has a negative and significant effect, while sales growth has a negative but insignificant effect. Furthermore, capital structure was unable to moderate the effect of investment decisions on firm value, but it was able to strengthen the effect of dividend policy and sales growth on firm value. This finding indicates that an optimal financing structure plays an important role in clarifying the financial signals received by investors, thereby increasing the effectiveness of corporate financial policies in building corporate value.
Keywords: Investmen decisions, dividend policy, sales growth, capital structure