Company Size as a Moderating Variable: Capital Structure Liquidity on Firm Value

Abstract

This study examines the effect of capital structure and liquidity on firm value, with firm size as a moderating variable, in property and real estate companies listed on the Indonesia Stock Exchange. A quantitative approach with a causal associative method was employed. Using purposive sampling, 17 companies were selected, yielding 51 observations from 2022–2024. Data were analyzed using Moderating Regression Analysis (MRA) with STATA 17. The results show that capital structure has no significant effect on firm value, whereas liquidity has a significant positive effect. Firm size does not moderate the relationship between capital structure and firm value but weakens the relationship between liquidity and firm value. These findings highlight the importance of effective liquidity management and financial policies aligned with cash flow conditions to enhance firm value and investor confidence.