Analysis of the Role of Profitability, Ownership Structure, and Capital Structure with Liquidity as a Mediating Variable in Achieving Optimal Company Value

Abstract

This study investigates how profitability, ownership structure, and capital structure influence firm value, with liquidity considered as a potential mediating factor. The sample includes 22 non-financial firms from the LQ45 index between 2022 and 2025, yielding 88 firm-year observations. Panel data regression analysis was performed using a Fixed Effects Model, incorporating year effects and unit-clustered standard errors, while the Sobel test was applied to assess indirect effects. The results indicate that profitability, ownership structure, and capital structure do not significantly affect liquidity. Furthermore, profitability, ownership structure, and liquidity do not have a significant impact on firm value. Meanwhile, capital structure exerts a negative influence on firm value, though this is significant only at the 10% level. Sobel test results reveal that liquidity does not mediate the effects of profitability, ownership structure, or capital structure on firm value. The results imply that changes in firm value among LQ45 non-financial companies during this period are more strongly influenced by time-specific or annual conditions than by the examined financial variables. The study offers empirical support that, for these firms between 2022 and 2025, liquidity plays a limited role in transmitting the effects of corporate financial attributes to firm value.