The Impact of Company Size and Debt Policy on Firm Value during COVID Pandemic: Profitability as a Moderating

Abstract

During the COVID-19 Pandemic, investors perceive the value of a company, as reflected in its stock price, as a crucial factor in their investment decisions. The higher the company’s value, the more appealing it becomes to potential investors. This study aims to examine how company size and debt policy impact firm value, with profitability acting as a moderating variable during the pandemic. The research specifically focuses on manufacturing companies listed on the Indonesia Stock Exchange between 2019 and 2021, analyzing the variables of company size, debt policy, and profitability as moderators for firm value. The study utilizes a quantitative approach with a causal research design. The sample was selected using purposive sampling, and the data was analyses using multiple linear regression analysis. The findings reveal that both company size and debt policy exert a positive influence on firm value. Furthermore, profitability is found to strengthen the relationship between company size, debt policy, and firm value.