The Effect of Profitability, Capital Structure, and Corporate Social Responsibility on Firm Value with Managerial Ownership as a Moderating Variable

Pinky Adelia Humairoh Syamsuri; Ambar Kusumaningsih

doi:10.55927/ijsmr.v4i3.15

Authors

Pinky Adelia Humairoh Syamsuri Universitas Negeri Surabaya
Ambar Kusumaningsih Universitas Negeri Surabaya

DOI:

https://doi.org/10.55927/ijsmr.v4i3.15

Keywords:

Firm Value, Profitability, Capital Structure, Corporate Social Responsibility, Managerial Ownership, Emerging Markets

Abstract

This study investigates the impact of profitability, capital structure, and corporate social responsibility (CSR) on business value, with management ownership serving as a moderating factor. The research focuses on companies in the consumer non-cyclical sector listed on the Indonesia Stock Exchange (IDX) during the 2022–2024 period. The study employs a quantitative approach by analyzing secondary data including annual reports, financial statements, and sustainability disclosures. The sample consists of 75 companies, resulting in 225 firm-year observations selected through purposive sampling. Data analysis is conducted using multiple linear regression and Moderated Regression Analysis (MRA). The empirical results show that profitability, capital structure, and CSR have a positive and significant impact on firm value. These findings suggest that both financial success and sustainability activities help to improve firm valuations in the marketplace. The findings also help managers and investors develop strategies to increase corporate value.

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