The Effect of Profitability and Institutional Ownership on Firm Value with Firm Size as a Moderating Variable
Keywords:
Institutional Ownership, Firm Value, Profitability, Firm Size
Abstract
Firm value reflects market perceptions of a company’s performance and future prospects, which are commonly associated with stock prices. This study aims to analyze the effects of profitability and institutional ownership on firm value, with firm size serving as a moderating variable. The research is motivated by the declining trend in the average Tobin’s Q ratio of food and beverage companies listed on the Indonesia Stock Exchange during the 2020-2024 period, indicating weakening market valuation within the subsector. This study employs a quantitative approach using Moderated Regression Analysis (MRA). The sample consists of 31 food and beverage companies selected through purposive sampling, resulting in 155 firm-year observations. The results show that profitability has a positive and significant effect on firm value, while institutional ownership does not have a significant effect. Furthermore, firm size strengthens the effect of profitability on firm value but does not moderate the relationship between institutional ownership and firm value. This study contributes to the development of signaling theory by examining the moderating role of firm size in the post-pandemic period and provides practical implications for investors and companies in evaluating firm value.
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References
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Kumar, A., & Singh, R. (2022). Interaction between firm size and profitability on firm value: Insights from Asian stock exchanges. Asia-Pacific Journal of Accounting & Economics, 29(5), 423–441.
Kustanta, H. (2024). Pengaruh kebijakan dividen, profitabilitas, likuiditas dan struktur modal terhadap nilai perusahaan dengan ukuran perusahaan sebagai variabel moderasi. Al-Kharaj: Jurnal Ekonomi, Keuangan & Bisnis Syariah, 6(5), 3465–3477. https://doi.org/10.47467/alkharaj.v6i5.1000
La Masidonda, J., Hariyanti, D., & Hariyati, T. R. (2025). Mengulik struktur modal dan nilai perusahaan. KBM Indonesia.
Lin, Y. R., & Fu, X. M. (2017). Does institutional ownership influence firm performance? Evidence from China. International Review of Economics and Finance, 49, 17–57. https://doi.org/10.1016/j.iref.2017.01.021
Marjohan, M. (2022). Manajemen keuangan, mengatur keuangan bidang industri golf. CV Jakad Media Publishing.
Maharani, Y. A., & Mawardhi, W. (2022). Pengaruh profitabilitas, firm size, dan growth terhadap nilai perusahaan dengan struktur modal sebagai variabel intervening. Diponegoro Journal of Management, 11(1).
Miranda, L., Yamasitha, Y., & Pondrinal, M. (2025). Pengaruh keputusan investasi, pertumbuhan penjualan dan struktur modal terhadap nilai perusahaan dengan profitabilitas sebagai variabel intervening. Jurnal Akuntansi, Keuangan, Perpajakan dan Tata Kelola Perusahaan, 2(3).
Nguyen, V. H. (2025). Corporate social responsibility disclosure and firm value: A signaling theory perspective. Journal of Economics and Development, 27(2), 114–128. https://doi.org/10.1108/JED-02-2024-0067
Pathak, D., & Chopra, M. (2026). Steering sustainability: The role of institutional ownership in ESG disclosure. Society and Business Review. https://doi.org/10.1108/SBR-02-2025-0043
Pramestie, L., & Ranuh, A. D. (2021). GCG, profitabilitas, dan nilai perusahaan asuransi. E-Jurnal Manajemen, 10(4), 395–415.
Purba, J. T., & Africa, L. A. (2019). The effect of capital structure, institutional ownership, managerial ownership, and profitability on company value. The Indonesian Accounting Review, 9(1), 27–38.
Putra, R. D., & Gantino, R. (2021). Pengaruh profitabilitas, leverage, dan ukuran perusahaan terhadap nilai perusahaan. Jurnal Bisnis dan Manajemen, 11(1), 81–96.
Putri, R. N., Basri, Y. M., & Hanif, R. A. (2025). Pengaruh profitabilitas dan likuiditas terhadap nilai perusahaan dengan ukuran perusahaan sebagai variabel moderasi. Jurnal Akuntansi dan Ekonomika, 15(1), 1–12.
Rahmadani, R., Nurbaiti, A., & Farida, A. L. (2021). Pengaruh opini audit, ukuran KAP, dan ukuran perusahaan terhadap audit report lag. Universitas Telkom.
Rinda Sari, I. U., & Wahyudi, R. (2023). Panel data regression: Equity financing and debt-based financing Islamic commercial banking in Indonesia. Al Tijarah, 9(1), 36–45.
Rudini, A., & Azmi, R. (2023). Metodologi penelitian bisnis dan manajemen pendekatan kuantitatif.
Sari, E., & Rahayu, S. (2024). Peran ukuran perusahaan sebagai variabel moderasi pada pengaruh GCG dan CSR terhadap nilai perusahaan. Jurnal Ilmiah Ekonomi, Akuntansi, dan Pajak, 1(3), 360–377.
Sari, R. N., & Akbar, T. (2025). Determinants of firm value with firm size as a moderating variable. ISAR Journal of Economics and Business Management, 3(9), 8–16.
Suriawinata, I. S., & Nurmalita, D. M. (2022). Ownership structure, firm value and moderating effects of firm size. Jurnal Manajemen dan Kewirausahaan, 24(1), 91–104.
Suzan, L., & Putri, A. R. (2022). The effect of gender diversity, profitability, and leverage on intellectual capital disclosure. Proceedings of the 3rd Asia Pacific International Conference on Industrial Engineering and Operations Management.
Syafitri, E. D., & Khalifaturofi’ah, S. O. (2023). Dampak pandemi Covid-19 terhadap kinerja keuangan perusahaan manufaktur. Journal of Business & Banking, 13(1), 1–15.
Tharavanij, P. (2024). Tobin’s Q revisited: A theoretical and empirical framework. GATR Global Journal of Business and Social Science Review, 12(3), 125–133.
Wardila, A., et al. (2023). Membedah kemampuan manusia dalam meraih mimpi. Penerbit Peneleh.
Wardoyo, D. U., & Fauziah, H. D. (2024). Pengaruh kepemilikan institusional, profitabilitas, dan struktur modal terhadap nilai perusahaan. Owner: Riset dan Jurnal Akuntansi, 8(1), 585–594.
Wahyuni, S. (2025). Analysis of company valuation based on Tobin's Q model. Jurnal Ekonomi, Bisnis & Entrepreneurship, 19(2), 159–174.
Widianingrum, H., & Dillak, V. J. (2023). Pengaruh kepemilikan institusional, kebijakan hutang, pertumbuhan perusahaan dan cash holding terhadap nilai perusahaan. Jurnal Ekomabis, 11(1).
Widnyana, I. W., & Purbawangsa, I. B. A. (2024). Teori-teori keuangan: Konsep dan aplikasi praktis.
Yudanti, A. F., & Wardoyo, D. U. (2022). Pengaruh ROA dan DER terhadap nilai perusahaan. Jurnal Cakrawala Ilmiah, 1(5), 1103–1112.
Yudhantara, G., & Hapsari, D. W. (2021). The influence of dividend policy, capital structure and profitability on company value. Universitas Telkom.
Yeni, F., Hady, H., & Elfiswandi. (2024). Nilai perusahaan berdasarkan determinan kinerja keuangan. Intelektual Manifes Media.
Almomani, T. M., Obeidat, M. I. S., Almomani, M. A., & Darkal, N. M. A. M. Y. (2022). Capital structure and firm value relationship: The moderating role of profitability and firm size evidence from Amman Stock Exchange. WSEAS Transactions on Environment and Development, 18(1), 1073–1084. https://doi.org/10.37394/232015.2022.18.102
Aprilia, L., & Wardoyo, D. U. (2024). Pengaruh manajemen risiko, intellectual capital, profitabilitas dan ukuran perusahaan terhadap nilai perusahaan pada sub sektor farmasi yang terdaftar di IDX Industrial Classification tahun 2018–2022. Owner: Riset & Jurnal Akuntansi, 8(1), 1–14. https://doi.org/10.33395/owner.v8i1.1841
Astuti, T. D., Pabulo, A. M. A., Tombo, J. B., Rizqullah, D., Leu, Y. D. S. B., Amiruddin, A. D. M. P., & Utami, D. T. (2024). Pengauditan (teori dan studi kasus). PT Sonpedia Publishing Indonesia.
Avista, L., Toni, N., & Ronny, Y. (2021). The effect of profitability, capital structure, liquidity on company value with company size as moderating variables on manufacturing companies listed on the IDX period 2015–2019. South East Asia Journal of Contemporary Business, Economics and Law.
Drobetz, W., El Ghoul, S., Guedhami, O., & Yu, X. (2025). Beyond ownership: The role of institutional investors in international corporate governance. Corporate Governance: An International Review. https://doi.org/10.1111/corg.12635
Eva, L., Hartono, H., & Santoso, H. (2025). The nexus of ownership structure, profitability, financing and firm value: Testing the moderating role of firm size. Journal of Management and Administration Provision, 5(2), 345–356. https://doi.org/10.55885/jmap.v5i2.617
Farihah, E. (2024). Kepatuhan dan APU–PPT: Konsep dan aplikasinya dalam tata kelola bisnis bank. Airlangga University Press.
Fathi, S., Mohammadin, Z., & Azarbayjani, K. (2024). Corporate finance signaling theory: an empirical analysis on the relationship between information asymmetry and the cost of equity capital. International Journal of Disclosure and Governance, 1–15. https://doi.org/10.1057/s41310-024-00261-4
Gama, A. W. S., Mitariani, N. W. E., & Widnyani, N. M. (2024). Kumpulan teori bisnis: Perspektif keuangan, bisnis, dan strategik. PT Nilacakra Publishing House.
Habibie, M. R., Heniwati, E., & Espa, V. (2025). Race against the deadline: Analisis faktor ketepatan waktu penyampaian laporan keuangan perusahaan indeks LQ-45. JIMEA: Jurnal Ilmiah MEA.
Hanifa Pingkan, A., & Pertiwi, T. K. (2022). The effect of profitability on firm value with firm size as a moderating variable in the company property and real estate 2018–2021. Management Studies and Entrepreneurship Journal, 3(6), 3534–3540.
Hartati, L. (2024). Manajemen keuangan nilai perusahaan dengan mediasi manajemen laba. Selat Media Patners.
Hashmi, S. D., Gulzar, S., Ghafoor, Z., & Naz, I. (2020). Sensitivity of firm size measures to practices of corporate finance: Evidence from BRICS. Future Business Journal, 6(9), 1–19. https://doi.org/10.1186/s43093-020-00015-y
Holly, A., Jao, R., & Mardiana, A. (2022). Institutional ownership, size, asset management, firm value. Atma Jaya Accounting Research, 5(1). https://doi.org/10.35129/ajar.v5i01.268
Hossain, M. S., Ali, M. S., Islam, M. Z., Safiuddin, M., Ling, C. C., & Fung, C. Y. (2024). The nexus of firms characteristics and tax avoidance – do independent directors have a role? Journal of Accounting in Emerging Economies, 15(3), 623–644. https://doi.org/10.1108/JAEE-03-2024-0120
Hutauruk, M. R., Sutarmo, Y., & Bachtiar, Y. (2022). Metodologi penelitian untuk ilmu sosial humaniora dengan pendekatan kuantitatif. Penerbit Salemba Empat.
Irawati, D. (2022). Corporate governance dan financial distress: Konsep dan analisis empiris. Wade Group.
Kumar, A., & Singh, R. (2022). Interaction between firm size and profitability on firm value: Insights from Asian stock exchanges. Asia-Pacific Journal of Accounting & Economics, 29(5), 423–441.
Kustanta, H. (2024). Pengaruh kebijakan dividen, profitabilitas, likuiditas dan struktur modal terhadap nilai perusahaan dengan ukuran perusahaan sebagai variabel moderasi. Al-Kharaj: Jurnal Ekonomi, Keuangan & Bisnis Syariah, 6(5), 3465–3477. https://doi.org/10.47467/alkharaj.v6i5.1000
La Masidonda, J., Hariyanti, D., & Hariyati, T. R. (2025). Mengulik struktur modal dan nilai perusahaan. KBM Indonesia.
Lin, Y. R., & Fu, X. M. (2017). Does institutional ownership influence firm performance? Evidence from China. International Review of Economics and Finance, 49, 17–57. https://doi.org/10.1016/j.iref.2017.01.021
Marjohan, M. (2022). Manajemen keuangan, mengatur keuangan bidang industri golf. CV Jakad Media Publishing.
Maharani, Y. A., & Mawardhi, W. (2022). Pengaruh profitabilitas, firm size, dan growth terhadap nilai perusahaan dengan struktur modal sebagai variabel intervening. Diponegoro Journal of Management, 11(1).
Miranda, L., Yamasitha, Y., & Pondrinal, M. (2025). Pengaruh keputusan investasi, pertumbuhan penjualan dan struktur modal terhadap nilai perusahaan dengan profitabilitas sebagai variabel intervening. Jurnal Akuntansi, Keuangan, Perpajakan dan Tata Kelola Perusahaan, 2(3).
Nguyen, V. H. (2025). Corporate social responsibility disclosure and firm value: A signaling theory perspective. Journal of Economics and Development, 27(2), 114–128. https://doi.org/10.1108/JED-02-2024-0067
Pathak, D., & Chopra, M. (2026). Steering sustainability: The role of institutional ownership in ESG disclosure. Society and Business Review. https://doi.org/10.1108/SBR-02-2025-0043
Pramestie, L., & Ranuh, A. D. (2021). GCG, profitabilitas, dan nilai perusahaan asuransi. E-Jurnal Manajemen, 10(4), 395–415.
Purba, J. T., & Africa, L. A. (2019). The effect of capital structure, institutional ownership, managerial ownership, and profitability on company value. The Indonesian Accounting Review, 9(1), 27–38.
Putra, R. D., & Gantino, R. (2021). Pengaruh profitabilitas, leverage, dan ukuran perusahaan terhadap nilai perusahaan. Jurnal Bisnis dan Manajemen, 11(1), 81–96.
Putri, R. N., Basri, Y. M., & Hanif, R. A. (2025). Pengaruh profitabilitas dan likuiditas terhadap nilai perusahaan dengan ukuran perusahaan sebagai variabel moderasi. Jurnal Akuntansi dan Ekonomika, 15(1), 1–12.
Rahmadani, R., Nurbaiti, A., & Farida, A. L. (2021). Pengaruh opini audit, ukuran KAP, dan ukuran perusahaan terhadap audit report lag. Universitas Telkom.
Rinda Sari, I. U., & Wahyudi, R. (2023). Panel data regression: Equity financing and debt-based financing Islamic commercial banking in Indonesia. Al Tijarah, 9(1), 36–45.
Rudini, A., & Azmi, R. (2023). Metodologi penelitian bisnis dan manajemen pendekatan kuantitatif.
Sari, E., & Rahayu, S. (2024). Peran ukuran perusahaan sebagai variabel moderasi pada pengaruh GCG dan CSR terhadap nilai perusahaan. Jurnal Ilmiah Ekonomi, Akuntansi, dan Pajak, 1(3), 360–377.
Sari, R. N., & Akbar, T. (2025). Determinants of firm value with firm size as a moderating variable. ISAR Journal of Economics and Business Management, 3(9), 8–16.
Suriawinata, I. S., & Nurmalita, D. M. (2022). Ownership structure, firm value and moderating effects of firm size. Jurnal Manajemen dan Kewirausahaan, 24(1), 91–104.
Suzan, L., & Putri, A. R. (2022). The effect of gender diversity, profitability, and leverage on intellectual capital disclosure. Proceedings of the 3rd Asia Pacific International Conference on Industrial Engineering and Operations Management.
Syafitri, E. D., & Khalifaturofi’ah, S. O. (2023). Dampak pandemi Covid-19 terhadap kinerja keuangan perusahaan manufaktur. Journal of Business & Banking, 13(1), 1–15.
Tharavanij, P. (2024). Tobin’s Q revisited: A theoretical and empirical framework. GATR Global Journal of Business and Social Science Review, 12(3), 125–133.
Wardila, A., et al. (2023). Membedah kemampuan manusia dalam meraih mimpi. Penerbit Peneleh.
Wardoyo, D. U., & Fauziah, H. D. (2024). Pengaruh kepemilikan institusional, profitabilitas, dan struktur modal terhadap nilai perusahaan. Owner: Riset dan Jurnal Akuntansi, 8(1), 585–594.
Wahyuni, S. (2025). Analysis of company valuation based on Tobin's Q model. Jurnal Ekonomi, Bisnis & Entrepreneurship, 19(2), 159–174.
Widianingrum, H., & Dillak, V. J. (2023). Pengaruh kepemilikan institusional, kebijakan hutang, pertumbuhan perusahaan dan cash holding terhadap nilai perusahaan. Jurnal Ekomabis, 11(1).
Widnyana, I. W., & Purbawangsa, I. B. A. (2024). Teori-teori keuangan: Konsep dan aplikasi praktis.
Yudanti, A. F., & Wardoyo, D. U. (2022). Pengaruh ROA dan DER terhadap nilai perusahaan. Jurnal Cakrawala Ilmiah, 1(5), 1103–1112.
Yudhantara, G., & Hapsari, D. W. (2021). The influence of dividend policy, capital structure and profitability on company value. Universitas Telkom.
Yeni, F., Hady, H., & Elfiswandi. (2024). Nilai perusahaan berdasarkan determinan kinerja keuangan. Intelektual Manifes Media.
Published
2026-08-11
How to Cite
Firmansyah, A., & Khairunnisa, K. (2026). The Effect of Profitability and Institutional Ownership on Firm Value with Firm Size as a Moderating Variable. Indonesian Interdisciplinary Journal of Sharia Economics (IIJSE), 9(2), 17512-17524. https://doi.org/10.31538/iijse.v9i2.10360
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Copyright (c) 2026 Annisa Firmansyah, Khairunnisa Khairunnisa
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