The Influence of Profitability, Intellectual Capital, and Investment Decisions on Company Value with Company Size as a Moderating Variable
DOI:
https://doi.org/10.26618/zp4qe272Keywords:
Profitability, Intellectual Capital, Investment Decision, Firm Value, Firm Size, PLS-SEMAbstract
This study investigates the influence of profitability, intellectual capital, and investment decisions on firm value, with firm size as a moderating variable, in property and real estate companies listed on the Indonesia Stock Exchange (IDX) from 2020 to 2023. Using a quantitative approach with Partial Least Squares Structural Equation Modeling (PLS-SEM) via WarpPLS 8.0, the study analyzes secondary data from 45 firms. The results indicate that profitability and intellectual capital have a significant positive effect on firm value. In contrast, investment decisions exhibit a negative but statistically insignificant effect. Furthermore, firm size significantly moderates the relationship between the three independent variables and firm value, strengthening the influence of profitability, intellectual capital, and investment decisions. These findings support the signaling theory and resource-based theory, emphasizing the strategic importance of profitability and intangible assets in enhancing firm value. The study contributes to the literature by providing empirical evidence on the role of firm size as a moderator in the Indonesian property sector. Recommendations are proposed for managerial decision-making, particularly in optimizing profitability, intellectual capital management, and investment strategies.
Downloads
References
Anisa, N., Hermuningsih, S., & Maulida, A. (2021). The effect of company size, leverage, dividend policy, and profitability on company value: a study of manufacturing companies in the food and beverages sector. Al-Kharaj: Journal of Islamic Economics, Finance & Business, 4(3) , 626–640. https://doi.org/10.47467/alkharaj.v4i3.708
Arsyada, AB, Sukirman, & Wahyuningrum, IF (2022). The Effect of Company Size, Profitability, and Investment Decisions on Company Value with Capital Structure as a Moderating Variable. Owner: Research & Accounting Journal”, Volume 6 Number 2. doi: https://doi.org/10.33395/owner.v6i2.785
Barney, J., & Arikan, A., 2001, "The resource-based view: Origins and implications", Handbook of Strategic Management
Bontis, N., Ciambotti, M., Palazzi, F., & Sgro, F. (2018). Intellectual capital and financial performance in social cooperative enterprises. Journal of Intellectual capital, 19 No. 4 , 712-731. doi: https://doi.org/10.1108/JIC-03-2017-0049
Brigham, EF, & Houston, JF (2019). Fundamentals of Financial Management Volumes 1 and 2. Jakarta: Salemba Empat.
Cahyani, NP, Putra, IG, & Manuari, IA (2022). The Effect of Dividend Policy and Investment Decisions on Firm Value with Financial Performance as a Moderating Variable. Jurnal Kharisma, Vol. 4 No. 2 .
Dewi, KY, & Rahyuda, H. (2020). The Effect of Profitability, Liquidity, and Dividend Policy on Company Value in the Consumer Goods Industry Sector at the Indonesian Stock Exchange. E-Journal of Management, Vol. 9, No. 4 , 1252-1272.
Dewi, VS, & Ekadjaja, A. (2020). The Effect of Profitability, Liquidity, and Company Size on Company Value in Manufacturing Companies. Tarumanagara Multiparadigma Accounting Journal, Vol. 2, No. 1 , 118-126.
Dwita, R., & Kurniawan. (2019). The Effect of Capital Structure, Company Size, and Investment Decisions on Company Value. STATERA: Journal of Accounting and Finance, Vol. 1 No. 1 , 76-90. doi: https://doi.org/10.33510/statera.2019.1.1.76-89
Fama, E.F., & French, K.R. (1998). Taxes, Financing Decisions, and Firm Value. The Journal of Finance, Vol. 53 (3), 819-843.
Firdaus, F., Tarmidi, D., & Fadjarenie, A. (2024). The Effect of Competitive Advantage, Intellectual Capital , and Concentrated Ownership on Firm Value with Firm Size as the Moderating Variable. East African Scholars Journal of Economics, Business and Management, Volume-7 (Issue-3). doi:DOI: 10.36349/easjebm.2024.v07i03.005
Halim, A. (2005). Investment Analysis. Second Edition. Jakarta: Salemba Empat
Hanifah, N. (2020). The Effect of Liquidity, Leverage, and Profitability on Firm Value. Journal of the Faculty of Economics and Business, Brawijaya University, 8(1), 80108. https://jimfeb.ub.ac.id/index.php/jimfeb/article/view/7232/6229
Hermawan, S., Octavia, R., & Maryanti, E. (2020). Intellectual capital, financial performance, and competitive advantage. Sidoarjo: Indomedia Pustaka.
Kristiadi, T., & Herijawati, E. (2023). The Effect of Profitability, Company Size, and Solvency on Company Value. Journal of Economics, Management, and Accounting, 2 (4) , 651-657.
Kusumowati, M., & Meiranto, W. (2014). The Influence of Intellectual Capital on Company Performance. Diponegoro Journal of Accounting, 3 (1).
Marturiana, K., & Idayati, F. (2024). The Effect of Company Size, Profitability, and Solvency on Company Value. Journal of Accounting Science and Research, 13 (4) .
Meidiyustiani, R., & Suryani. (2021). The Influence of Capital Structure, Company Size, Profitability, and Audit Committee on Company Value. Online Journal of Accountants, 6 , 67-82.
Mohapatra, S., & Pattanayak, J. K. (2024). Unraveling the Dynamics of Intellectual capital , Firm Performance, and the Influential Moderators—BIG4 Auditors and Group Affiliation. International Journal of Financial Studies, 12(1) . doi:https://doi.org/10.3390/ijfs12010029
Newbert, SL (2007) Empirical Research on Resource Based View of the Firm: An Assessment and Suggestions for Future Research. Strategic Management Journal, 28, 121-146.
Nurhasanah, A., & Kahfi, Z. (2023). The Effect of Profitability on Company Value with Corporate Social Responsibility Disclosure as a Moderating Variable. Bata Ilyas Educational Management Review, 3 (2), 1-13.
Pulic, A. (2008). The Principles of Intellectual Capital Efficiency—A Brief Description.
Saputra, AA (2019). The Relationship between Intellectual Capital and Company Performance. Journal of Accounting and Auditing, 16 No. 2 , 60-88.
Simandjuntak, JB, & Murwaningsari, E. (2022). The Moderating Effect of Company Size on Audit Committee and Intellectual Capital Toward Corporate Value. Archives of Business Research, Vol. 10, no. 4 , 1-13. doi:DOI:10.14738/abr.104.12022
Subagio, DI, & Januarti, I. (2022). The Effect of Intellectual Capital on Firm Value with Earnings Management as a Moderating Variable. Journal of Applied Managerial Accounting, Vol. 6, No. 1 , 102-114.
Sugiyarto, A., & Widhiastuti, S. (2023). Factors that Play a Significant Role in Stock Returns and the Value of Publicly Listed Banking Companies in Indonesia. Syntax Literate: Indonesian Scientific Journal, Vol. 8 No. 4.
Sulistyanto, HS (2018). Earnings Management: Theory and Empirical Models . Jakarta: PT Gramedia.
Spence, M. (1973). Job Market Signaling. The Quarterly Journal of Economics, 87, no. 3 , 355-374.
Riadi, R., & Surjadi, L. (2021). The Influence of Capital Structure, Intellectual Capital, and Profitability on Firm Value. Multiparadigm Accounting Journal, Vol. III No. 1 , 228-237.
Soewarno, N., & Tjahjadi, B. (2020). Measures that matter: an empirical investigation of intellectual capital and financial performance of banking firms in Indonesia. Journal of Intellectual Capita, 21(6) , 1085-1106. doi:https://doi.org/10.1108/JIC-09-2019-0225
Sormin, R.D., Hasnawati, S., & Faisol, A. (2021). The Influence of Investment Decisions, Dividend Policy, and Profitability on Firm Value. Journal of Business and Management, Volume 17 No. 3 , 141-161.
Thio, KT, & Susilandari, CA (2020). Analysis of the Effect of Profitability, Company Size, Company Growth, and Capital Structure on the Value of Manufacturing Companies Listed on the Indonesia Stock Exchange. Journal of Accounting, Auditing and Finance, 17 No. 2 , 157-174. doi: https://doi.org/10.25170/balance.v17i2
Wahyuni, F., & Pramudita, N. (2024). Disclosure of Corporate Social Responsibility, Intellectual Capital , Company Value, and Company Size in Mining Companies. Indonesian Accounting and Business Review, Vol. 8 No. 1 , 105-122.
Widhiastuti, S., Sukarya, BZ, & Ahmadi, S. (2020). The Role of Intellectual Capital in Moderating Investment Risk and Capital Structure on Firm Value in Food and Beverage Manufacturing Companies Listed on the Indonesia Stock Exchange. Fokus Bisnis: Media for Management and Accounting Studies, 19, No. 02 , 161-172. doi:10.32639/fokusbisnis.v19i2.731
Mesirngsih, Y., & Widhiastuti, S. (2022). The Impact of Firm Value Influenced by Investment Decisions, Capital Structure, and Dividend Policy. Journal of Entrepreneurship Management, Vol. 19(01) No. 01. doi : http://dx.doi.org/10.33370/jmk.v19i1.719
Downloads
Published
Issue
Section
License
Copyright (c) 2025 GoodWill Journal of Economics, Management, and Accounting
This work is licensed under a Creative Commons Attribution 4.0 International License.
