The Effect of Financial Performance on Firm Value with Capital Structure as a Moderating Variable in the Infrastructure Sector for the 2023–2024 Period

Abstract

This study aims to analyze the effect of financial performance on firm value with capital structure as a moderating variable in infrastructure sector companies listed on the Indonesia Stock Exchange (IDX) during the 2023–2024 period. This study employed a quantitative method using secondary data obtained from the financial statements of infrastructure companies. The population consisted of 67 companies. Using purposive sampling, 50 companies were selected, and after the outlier treatment process, the final sample comprised 37 companies. Data were analyzed using panel data regression with the Random Effect Model (REM), while the moderating effect was tested using Moderated Regression Analysis (MRA) with EViews 13. The results indicate that Return on Assets (ROA) has a positive and significant effect on firm value, whereas the Current Ratio (CR) and Debt to Equity Ratio (DER) have no significant effect on firm value. Furthermore, the Debt to Equity Ratio (DER) is unable to moderate the relationship between Return on Assets (ROA) and firm value or between the Current Ratio (CR) and firm value. These findings contribute to the literature on the determinants of firm value and provide useful insights for corporate management and investors in financial decision-making.