Exploring Asset and Equity Growth, Leverage, Flexibility’s Influence on Value: Mediated by Financial Risk, CSR, and Moderated by Corporate Governance

Articles in Press

Document Type : Research Paper

Authors

Faculty of Economics, Universitas 17 Agustus 1945 Surabaya, Surabaya, Indonesia

10.22059/ier.2024.370242.1007902

Abstract

The purpose of this study is to analyze the factors that affect firm value through asset growth, financial leverage, equity growth, and financial flexibility either directly or indirectly through financial risk and CSR disclosure, and moderated by GCG as measured by managerial ownership, independent board of commissioners, and audit committee. This research uses quantitative explanatory or associative research. The population of this study is Mining Companies listed on the IDX for the 2017-2021 Period. The sample selection method with purposive sampling obtained 19 companies. The data collection technique uses literature study because the data is secondary data obtained from the idx website. The analysis technique used is Structural Equation Modeling (SEM) with the Partial Least Square (PLS) version 3.0 method. The results showed (1) asset growth, equity growth, has a negative and insignificant effect on financial risk and financial leverage has a positive and insignificant effect, while financial flexibility has a negative and significant effect; (2) equity growth, financial leverage, and financial flexibility have a negative and insignificant effect on CSR disclosure, while asset growth has a positive and insignificant effect; (3) Asset growth, equity growth, financial leverage have a positive and insignificant effect on firm value, while financial flexibility, financial risk, and CSR disclosure have a negative and insignificant effect; (4) Financial risk variables and CSR disclosure are not proven as mediating variables; (5) GCG variables as measured by managerial ownership, independent board of commissioners and audit committee are not proven as moderating variables.

Keywords

Main Subjects

Iranian Economic Review

Articles in Press, Accepted Manuscript
Available Online from 02 October 2024

Files

Share

How to cite

Statistics