The Moderating Effect of Firm Size on the Relationship Between Capital Structure and Profitability Toward Firm Value

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Firm size acts as a moderator in the relationship between capital structure and profitability affecting firm value.
The study found significant insights into how capital structure influences firm value in the non-cyclical consumer sector.
Employing signaling and trade-off theories, the research highlights how companies communicate financial status to investors.
Findings inform corporate management on strategic decisions to enhance firm value amid economic fluctuations.

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Analysis reveals firm size moderates the relationship of capital structure and profitability on firm value, suggesting strategic decision-making.

Mumpuni et al. (2025) studied this question.

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Analysis reveals firm size moderates the relationship of capital structure and profitability on firm value, suggesting strategic decision-making.