Effect of Firm Size and Leverage on Firm Value with Return On Equity as Intervening Variables

Roy Budiharjo

doi:https://doi.org/10.14445/23939125/IJEMS-V7I4P119

Research Article | Open Access

Volume 7 | Issue 4 | Year 2020 | Article Id. IJEMS-V7I4P119 | DOI : https://doi.org/10.14445/23939125/IJEMS-V7I4P119

Effect of Firm Size and Leverage on Firm Value with Return On Equity as Intervening Variables

Roy Budiharjo

Citation :

Roy Budiharjo, "Effect of Firm Size and Leverage on Firm Value with Return On Equity as Intervening Variables," International Journal of Economics and Management Studies, vol. 7, no. 4, pp. 145-152, 2020. Crossref, https://doi.org/10.14445/23939125/IJEMS-V7I4P119

Abstract

This study aims to examine the effect of company size and leverage on firm value with return on equity as an intervening variable. The data used in this study are secondary data from financial statements of companies listed on the Indonesia Stock Exchange in the Food and Beverage Industry sub-sector in 2015 - 2018. By using purposive sampling, this study obtained 15 company samples. The analytical method used in this study is moderated regression analysis (MRA). The results showed that company size had a negative and not significant effect on Return on Equity (ROE), Leverage had a positive and significant effect on Return on Equity (ROE). Company size has a negative and not significant effect on firm value, while leverage and ROE have a positive and significant effect on firm value.

Keywords

Firm size, leverage, return on equity, firm value.

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