The effect of policy on debt and profitability with firm values with corporate governance as moderate variables

Randy Chaidir, Rosidi Rosidi and Wuryan Andayani
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Randy Chaidir: Accounting Department, Faculty of Economics and Business, University of Brawijaya, Malang, Indonesia
Rosidi Rosidi: Assoc. Prof., Accounting Department, Faculty of Economics and Business, University of Brawijaya, Malang, Indonesia
Wuryan Andayani: Assoc. Prof., Accounting Department, Faculty of Economics and Business, University of Brawijaya, Malang, Indonesia

International Journal of Research in Business and Social Science (2147-4478), 2021, vol. 10, issue 8, 39-46

Abstract: This study aims to determine the effect of debt policy and profitability on firm value moderated by corporate governance. This study uses secondary data on manufacturing companies listed on the Indonesia Stock Exchange for a five-year period from 2016 to 2020. The sample selection used the purposive sampling method in order to obtain a total of 195 samples that met the specified criteria. This research was tested using Moderated Regression Analysis. The results of this study provide evidence that debt and profitability policies have a positive effect on firm value. Corporate is unable to influence the policy of debt to the value of the company, meaning that corporate governance cannot parse the information asymmetry caused by the policy of debt to corporate value and corporate governance strengthen the influence of profitability on firm value, which means that with the increasing corporate governance can strengthen the effect of profitability on firm value. Key Words:Debt Policy, Profitability, Company Value, Corporate Governance

Date: 2021
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