The Company Size as a Moderating Variable for the Effect of Investment Opportunity Set, Debt Policy, Profitability, Dividend Policy and Ownership Structure on the Value

Abstract

This study aims to prove and analyze the effect of investment opportunity set, debt policy, profitability, devidend policy, and ownership structure, with company size as a moderating variable, on firm value in construction companies listed on the Indonesia Stock Exchange (IDX) from 2011 to 2017. The population is 30 construction companies listed on the IDX in 2017, while 14 companies meet the requirements to be used as research samples. This is an explanatory research, which explains the causal relationship between independent variables and dependent variable strengthened by moderating variables, through hypotheses testing. The data analysis technique used in this study is WarpPLS. The results of this study showed that investment opportunity set has a positive significant effect on firm value, while dividend policy and company size has a negative significant effect on firm value. Whereas debt policy, profitability, and ownership structure have no significant effect on firm value. The smaller the company size will increase firm value and vice versa. The company size is an absolute moderating variable.