THE EFFECT OF LIQUIDITY AND LEVERAGE ON FIRM VALUE WITH PROFITABILITY AS MEDIATION VARIABLES

• Published in: Eurasia: Economics & Business
• Main Authors: Putra I K.R.K., Dana I M.
• Format: Article
• Language: English
• Published: iVolga Press 2023-08-01
• Subjects: liquidity; leverage; firm value; profitability
• Online Access: http://econeurasia.com/issue-2023-08/article_17.pdf

In the realm of business, one crucial aspect that can never be overlooked is a company's market worth. Because of the significant contribution that the transportation and logistics sector makes to the Indonesian economy, the objective of this research is to determine the effect that the variables liquidity and leverage have on firm value, with profitability serving as a mediating variable, in the transportation and logistics sector listed on the Indonesia Stock Exchange during the years 2019 to 2021. Participants in the study's samples On the Indonesia Stock Exchange (IDX), this is a transportation and logistics company that had already listed its shares before the research period began. Path analysis and the sobel test are the methodologies that are utilised in the data analysis process. The findings of this study suggest that negative leverage does not have a significant effect on firm value, that liquidity does not have a significant negative effect on firm value, that liquidity has a positive and significant effect on profitability, that leverage does not have a significant negative effect on profitability, that profitability does not have a significant negative effect on firm value, that profitability is unable to mediate the effect of either liquidity or leverage on firm value, and that profitability does not have a significant negative effect on firm value. According to the findings of this research, profitability was unable to act as a moderator between liquidity and profitability's influence on firm value.