Leverage and liquidity to firm value moderated by firm size: a signaling theory approach
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Aug 18, 2023
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Abstract
This study used the Signaling Theory approach to determine the effect of leverage and liquidity on firm value and used firm size as a moderating variable. The research sample used is food and beverage sector companies listed on the Indonesia Stock Exchange during 2016-2021. Data processing was carried out with the STATA version 17 statistical application. The leverage variable is used to see the proportion of debt used by the company in its financing and the results show that leverage is proven to increase firm value significantly. Liquidity is used to see the company's ability to pay its debt obligations and the results show that liquidity is proven to significantly increase firm value. These findings strengthen the theory that leverage and liquidity have a positive effect on firm value. Firm size is used as a variable that is considered to strengthen the relationship between leverage and liquidity. However, the results show that firm size is not proven to strengthen the relationship between leverage and liquidity on firm value.
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How to Cite
Sari, K., Akhmadi, A., & Ichwanuddin, W. (2023). Leverage and liquidity to firm value moderated by firm size: a signaling theory approach. Enrichment : Journal of Management, 13(3), 2073-2082. https://doi.org/10.35335/enrichment.v13i3.1579
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Reschiwati, R., Syahdina, A., & Handayani, S. (2019). Effect of Liquidity, Profitability, and Size of Companies on Firm Value. Utopia y Praxis Latinoamericana, 25(6), 325–332. https://doi.org/https://doi.org/10.5281/zenodo.3987632
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Susanti, N., & Restiana, N. G. (2018). What’s the Best Factor to Determining Firm Value? Jurnal Keuangan Dan Perbankan, 22(2). https://doi.org/10.26905/jkdp.v22i2.1529
Suteja, J., & Abas, M. R. (2018). Factor Influence Analysis of Corporate Value with Firm Size as Moderator Variable in Indonesia Stock Exchange. Ekuilibrium : Jurnal Ilmiah Bidang Ilmu Ekonomi, 13(1), 57. https://doi.org/10.24269/ekuilibrium.v13i1.916
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Uzliawati, L., Yuliana, A., Januarsi, Y., Santoso, M. I., & Id, U. A. (2018). Optimisation of Capital Structure and Firm Value. European Research Studies Journal, XXI(2), 705–713.
Aji, A. W., & Atun, F. F. (2019). Pengaruh Tax Planning, Profitabilitas, dan Likuiditas terhadap Nilai Perusahaan dengan Ukuran Perusahaan sebagai Variabel Moderasi (Studi Kasus Perusahaan Manufaktur yang Terdaftar di Bursa Efek Indonesia Tahun 2014-2018). Jurnal Ilmiah Akuntansi Dan Humanika, 9(3), 222–234.
Akhmadi, A., Ichwanudin, W., & Uyun, U. (2021). Capital structure, company size, and Company value: test significance Moderate model. Jurnal Riset Akuntansi Terpadu, 14(2), 137. https://doi.org/10.35448/jrat.v14i2.12428
Akhmadi, A., & Robiyanto, R. (2020). The Interaction Between Debt Policy, Dividend Policy, Firm Growth, and Firm Value. Journal of Asian Finance, Economics, and Business, 7(11), 699–705. https://doi.org/10.13106/jafeb.2020.vol7.no11.699
Audrey Tunggal, C., & Ngatno. (2018). Pengaruh Struktur Modal Terhadap Nilai Perusahaan dengan Ukuran dan Umur Perusahaan sebagai Variabel Moderator (Studi Kasus Tahun 2014-2016) pada Perusahaan Sub-Sektor Makanan dan Minuman yang Terdaftar di BEI. Jurnal Ilmu Administrasi Bisnis, 7(2), 141–157. http://ejournal-s1.undip.ac.id/index.php/
Fahri, Z., Jannah, R., & Sumarlin. (2022). Pengaruh Struktur Modal, Kebijakan Utang, dan Umur Perusahaan Terhadap Nilai Perusahaan dengan Ukuran Perusahaan sebagai Variabel Moderasi. ISAFIR: Islamic Accounting and Finance Review, 3(1).
Fajaria, A. Z., & Isnalita. (2018). The Effect of Profitability, Liquidity, Leverage and Firm Growth of Firm Value with its Dividend Policy as a Moderating Variable. International Journal of Managerial Studies and Research, 6(10), 55–69. https://doi.org/10.20431/2349-0349.0610005
Hapsoro, D., & Falih, Z. N. (2020). The Effect of Firm Size, Profitability, and Liquidity on The Firm Value Moderated by Carbon Emission Disclosure. Journal of Accounting and Investment, 21(2). https://doi.org/10.18196/jai.2102147
Hirdinis. (2019). Capital Structure and Firm Size on Firm Value Moderated by Profitability. International Journal of Economics and Business Administration, VII(Issue 1), 174–191. https://doi.org/10.35808/ijeba/204
Huu Luu, D. (2021). The Impact of Capital Structure on Firm Value: A Case Study in Vietnam*. Journal of Asian Finance, Economics, and Business, 8(5), 287–0292. https://doi.org/10.13106/jafeb.2021.vol8.no5.0287
Ibrahim, U. A., & Isiaka, A. (2020). Effect of Financial Leverage on Firm Value: Evidence From Selected Firms Quoted on the Nigerian Stock Exchange. European Journal of Business and Management, 12(3). https://doi.org/10.7176/ejbm/12-3-16
Ichwanudin, W., Nurhayati, E., & Nupus, H. (2022). Building a Model to Assess Signaling Theory in Its Correlation between Capital Structure and Firm Value. European Journal of Business and Management, 14(22). https://doi.org/10.7176/ejbm/14-22-06
Ifada, L. M., Faisal, F., Ghozali, I., & Udin, U. (2019). Company Attributes and Firm Value: Evidence from Companies Listed on Jakarta Islamic Index. Revista Espacios, 40(37), 11. https://www.revistaespacios.com/a19v40n37/19403711.html
Jihadi, M., Vilantika, E., Hashemi, S. M., Arifin, Z., Bachtiar, Y., & Sholichah, F. (2021). The Effect of Liquidity, Leverage, and Profitability on Firm Value: Empirical Evidence from Indonesia. Journal of Asian Finance, Economics, and Business, 8(3), 423–431. https://doi.org/10.13106/jafeb.2021.vol8.no3.0423
Kementerian Perindustrian Republik Indonesia. (2021, April 12). Industri Makanan dan Minuman Diakselerasi Menuju Transformasi Digital. Siaran Pers Kementerian Perindustrian. https://kemenperin.go.id/artikel/22485/Industri-Makanan-dan-Minuman-Diakselerasi-Menuju-Transformasi-Digital
Komara, A., Ghozali, I., & Januarti, I. (2020). Examining the Firm Value Based on Signaling Theory. Advances in Economics, Business and Management Research, 123.
Napitupulu, R. D. (2019). Determinasi Rasio Likuiditas dan Rasio Profitabilitas Terhadap Pertumbuhan Laba pada Perusahaan yang Terdaftar di Bursa Efek Indonesia. Journal of Information System, Applied, Management, Accounting and Research, 8700(2). http://journal.stmikjayakarta.ac.id/index.php/jisamarTelp.+62-21-3905050
Nguyen, T. T., Nguyen, H. P., & Vu, N. T. (2020). The Relationship Between Capital Structure And Firm Value: Cases of Listed Companies in The Food and Beverages Industry In Vietnam. Academy of Accounting and Financial Studies Journal, 24(1). https://www.abacademies.org/articles/the-relationship-between-capital-structure-and-firm-value-cases-of-listed-companies-in-the-food-and-beverages-industry-in-vietnam-9053.html
Reschiwati, R., Syahdina, A., & Handayani, S. (2019). Effect of Liquidity, Profitability, and Size of Companies on Firm Value. Utopia y Praxis Latinoamericana, 25(6), 325–332. https://doi.org/https://doi.org/10.5281/zenodo.3987632
Santosa, P. W. (2020). The Moderating Role of Firm Size on Financial Characteristics and Islamic Firm Value at Indonesian Equity Market. Business: Theory and Practice, 21(1), 391–401. https://doi.org/10.3846/btp.2020.12197
Sudiyatno, B., Puspitasari, E., Suwarti, T., & Asyif, M. M. (2020). Determinants of Firm Value and Profitability: Evidence from Indonesia. Journal of Asian Finance, Economics, and Business, 7(11), 769–778. https://doi.org/10.13106/jafeb.2020.vol7.no11.769
Susanti, N., & Restiana, N. G. (2018). What’s the Best Factor to Determining Firm Value? Jurnal Keuangan Dan Perbankan, 22(2). https://doi.org/10.26905/jkdp.v22i2.1529
Suteja, J., & Abas, M. R. (2018). Factor Influence Analysis of Corporate Value with Firm Size as Moderator Variable in Indonesia Stock Exchange. Ekuilibrium : Jurnal Ilmiah Bidang Ilmu Ekonomi, 13(1), 57. https://doi.org/10.24269/ekuilibrium.v13i1.916
Tabe, R., Lapian, S. L. V. J., Sam, U., Manado, R., & Maramis, J. B. (2022). The Effect of Firm Size, Investment Opportunity Set, and Capital Structure on Firm Value. The Seybold Report, 17(5), 56–74. https://doi.org/10.5281/zenodo.6592088
Tumanan, N., & Dyah Ratnawati. (2021). Pengaruh Likuiditas, Profitabilitas, Leverage Terhadap Nilai Perusahaan, CSR Sebagai Pemoderasi. E-Bisnis : Jurnal Ilmiah Ekonomi Dan Bisnis, 14(1), 123–136. https://doi.org/10.51903/e-bisnis.v14i1.380
Uzliawati, L., Yuliana, A., Januarsi, Y., Santoso, M. I., & Id, U. A. (2018). Optimisation of Capital Structure and Firm Value. European Research Studies Journal, XXI(2), 705–713.