The Effect of Liquidity, Leverage, Profitability, and Dividend Policy on Company Value with Investment Decisions as a Mediation Variable and Corporate Social Responsibility as a Moderating Variable in Companies Listed in the Lq45 Index on the Indonesia Stock Exchange

Abstract

This quantitative study utilizes SEM-PLS (SmartPLS 4.0) to analyze the effect of liquidity, leverage, profitability, and dividend policy on firm value among 32 sampled LQ45 companies, with investment decisions as an intervening variable and CSR as a moderating variable. The results indicate that liquidity, leverage, profitability, and dividend policy have a positive and significant effect on firm value and investment decisions. Investment decisions also positively and significantly affect firm value and mediate the relationships between liquidity, leverage, profitability, dividend policy, and firm value. In addition, Corporate Social Responsibility (CSR) positively and significantly moderates the effect of investment decisions on firm value. The implications of this study indicate that companies need to maintain financial stability, optimize investment decisions, and improve the implementation of CSR programs to increase firm value and investor confidence. Furthermore, management is expected to manage liquidity, leverage, profitability, and dividend policies effectively in order to support sustainable corporate growth.