Moderation of Firm Size and Intellectual Capital on the Effect of Profitability on Firm Value

Abstract

The research aims to examine the effect of profitability on firm value
with the moderating variables of firm size and intellectual capital. The
population of this research is 47 mining companies listed on the
Indonesia Stock Exchange in 2016–2020. The research sample used
purposive sampling so that 29 companies were selected with a period of
5 years of observation, so a sample of 145 observations was obtained.
The data analysis technique used Moderated Regression Analysis
(MRA). This research finds that profitability, firm size and intellectual
capital have a positive and significant effect on firm value. Firm size and
intellectual capital can moderate the positive effect of profitability on
firm value. This type of moderation includes quasi-moderation in which
the two moderating variables that interact with the independent variable
(profitability) are also independent variables.