Hajri Joni, Magister Student, Faculty of Economics, Sriwijaya University, Indonesia

ORCID ID: 0000-0002-2111-9794
e-mail: jhajri17@gmail.com

Adam Mohamad, Professor (Economics), Lecturer at Faculty of Economics, Sriwijaya University, Indonesia

ORCID ID: 0000-0001-5516-5345
e-mail: mr_adam88@unsri.ac.id

Widiyanti Marlina, Doctor (Economics), Lecturer at Faculty of Economics, Sriwijaya University, Indonesia

ORCID ID: 0000-0003-0431-814X
e-mail: marlinawidiyanti68@yahoo.co.id

Influence of Key Performance Indicators on Firm Value Using Leverage as an Intermediate Variable

Abstract. Introduction. The value of the company can describe the state of a company because with good firm value, the company will be categorized as good by the investors through the firm value, and vice versa. Thus, it is very important to identify any factors that will affect and consider the use of leverage to increase firm value. This research applied a time series design with the sample of 45 companies LQ45 list on Indonesia Stock Exchange (IDX) in 2016-2020 period. This research used purposive sampling method. To analyze the data, conducted Structural Equation Modeling (SEM) path analysis with the application AMOS software.

Purpose. The value of the company can describe the state of a company because with good firm value, the company will be categorized as good by the investors through the firm value, and vice versa. Thus, it is very important to identify any factors that will affect and consider the use of leverage to increase firm value. This research applied a time series design with the sample of 45 companies LQ45 list on Indonesia Stock Exchange (IDX) in 2016-2020 period. This research used purposive sampling method. To analyze the data, conducted Structural Equation Modeling (SEM) path analysis with the application AMOS software.

Results. The results showed that profitability and liquidity had a positive and significant direct effect on firm value; size did not show any significant direct effect on firm value. In other discussions leverage can significantly mediate the impact of size on firm value, while leverage cannot significantly mediate the impact of profitability and liquidity on firm value.

Conclusions. It is expected that this study contributes to the relationship among variables, especially profitability, size firm, liquidity, firm value, leverage. To some extent, the findings of this study could give positive impacts to the advancements of company value, the prospective investments and to the future researchers.

Keywords: profitability; size firm; liquidity; firm value; leverage.

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