Analysis of the Influence of Leverage, Profitability, and Liquidity on Firm Value with Firm Size as a Mediating Variable in Healthcare Sector Companies Listed on the Indonesia Stock Exchange (2021–2025)

Abstract

This study aims to analyze the influence of leverage, profitability (ROA), and liquidity on firm value, with firm size as a mediating variable, in healthcare sector companies listed on the Indonesia Stock Exchange (IDX) during the 2021–2025 period. A quantitative causal approach is employed using panel data from seven hospital companies selected through purposive sampling, yielding 35 observations processed with EViews 12 panel data regression. Model selection tests indicate that the Fixed Effect Model (FEM) is the most appropriate specification for both structural equations. Results show that leverage has a positive and significant effect on firm size, whereas profitability and liquidity do not significantly influence firm size. In the firm value model, leverage, profitability, and liquidity each have a positive and significant effect on firm value, while firm size exerts a negative and significant effect. The mediation test reveals that firm size does not act as a significant mediating variable, since the direct effects of the independent variables substantially dominate the indirect effects. The regression models explain 85.80% of the variation in firm size and 89.05% of the variation in firm value. These findings carry important implications for management and investors in optimizing capital structure and liquidity policies within the healthcare sector.