Does The Investment Opportunity Set Strengthen The Effect of Profitability, Managerial Ownership and Capital Structure on Firm Value?
Keywords:Firm Value, Profitability, Managerial ownership, Capital Structure and Investment Opportunity Set
This study aims to examine the effect of profitability, managerial ownership, and capital structure on firm value and to test whether the investment opportunity set strengthens Profitability, managerial Ownership, and capital structure on firm value. As part of the purposive sampling method used in this study, which leverages secondary data, 60 data points were collected from 15 firms between 2018 and 2021 that met the required requirements. Moderate Regression Analysis (MRA) is the method of data analysis used in this study. According to the findings of the study, profitability has not to effect on firm value, managerial ownership has a positive effect on firm value, capital structure has a positive effect on firm value, investment opportunity sets weaken the relationship between profitability on firm value, investment opportunity sets weaken the relationship between managerial ownership on firm value, and investment opportunity set strengthens the relationship between capital structure on firm value. This research's objective was to ascertain if the investment opportunity set enhances both the direct and indirect impacts of Profitability, managerial Ownership, and capital structure on firm value. Based on the conclusions and limitations that exist, there are several suggestions addressed to parties related to research regarding the role of investment opportunity sets in moderating Profitability, managerial Ownership, and capital structure on firm value.
Copyright (c) 2022 Garnis Mulya Ningrum, Khomsiyah Khomsiyah
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution-ShareAlike 4.0 International (CC-BY-SA). that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work.