The effect of capital expenditure, company growth and company size on firm value through financial performance moderated by capital structure

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Abstract

This study aims to examine the influence of capital expenditure variables, company growth, and company size on firm value through financial performance is moderated by the capital structure of the company in LQ 45 companies listed on the Indonesia Stock Exchange. The research methodology uses quantitative methods, the number of observations as many as 50 sourced from 45 companies over five annual periods. The results of this study found that: (1) Capital Expenditure (Capex), Company Growth (Growth) and Company Size (Size) had no effect on Company Value (PBV), (2) Capital Expenditure (Capex) does not affect Financial Performance (ROE), (3) Company Growth (Growth) and Company Size (Size) have a significant effect on ROE, (4) Financial Performance (ROE) has a significant positive effect on Value Company (PBV), (5) Financial Performance (ROE) does not mediate the effect of Capital Expenditure (Capex), Company Growth (Growth) and Company Size (Size) on Firm Value (PBV), (6) Capital Structure (DER) moderates the influence of Financial Performance (ROE) to Company Value (PBV).

Keywords: Capital Expenditure, Company Growth, Company Size, Financial Performance, Capital Structure, Firm Value

Authors’ individual contribution: Conceptualization - S.; Methodology - S.; Writing – S.; Investigation – S.; Funding – S.; Resources – S.; Supervision – Y.H.

JEL Classification: G30, G32

Received: 27.09.2019
Accepted: 12.12.2019
Published online: 13.12.2019

How to cite this paper: Salimah, & Herliansyah, Y. (2019). The effect of capital expenditure, company growth and company size on firm value through financial performance moderated by capital structure [Special issue]. Corporate Ownership & Control, 17(1), 236-244. https://doi.org/10.22495/cocv17i1siart6