THE ROLE OF DEBT POLICY AS A MODERATING VARIABLE IN THE INFLUENCE OF PROFITABILITY AND INVESTMENT OPPORTUNITY SET ON FIRM VALUE

Abstract

This study uses debt policy as a moderating variable to gather empirical evidence about the impact of profitability and investment opportunity set on business value. This study takes a quantitative approach, which is research that analyzes numerical data that has been statistically processed. For the 2020–2024 timeframe, the companies utilized are real estate and property firms registered on the Indonesia Stock Exchange (IDX). Purposive sampling is the sample technique employed. There are 52 businesses in the real estate and property industry that fit the requirements. With the aid of IBM SPSS Statistics 24, this study makes use of multiple linear regression, traditional assumption tests, hypothesis testing, and Moderated Regression Analysis (MRA). The study's findings indicate that investment opportunity set has a significant and positive impact on firm value, profitability has a significant and negative impact on firm value, and debt policy cannot mitigate the effects of either of these factors. It is advised that future studies employ a greater variety of debt policy indicators, such as the debt-to-asset ratio, long-term debt ratio, or cash flow-based ratios, and broaden the focus of industrial sectors in order to evaluate outcomes across sectors.