Analysis of the Effect of Leverage, Company Size and Liquidity on Firm Value with Return On Asset as an Intervening Variable in Healthcare Companies Listed on the Indonesia Stock Exchange for the 2019-2022 Period

Abstract

Return on assets  (ROA) which acts as an intervening variable in this study attempts to determine the effect of leverage, company size, and liquidity on Firm Value in healthcare companies listed on the Indonesia Stock Exchange from 2019 to 2022. The leverage variable in this study is proxied by the Debt to Equity Ratio  (DER), company size is proxied by Ln total assets, liquidity is proxied by the current ratio, company size is proxied by Price to Book Value  (PBV) with the intervening variable proxied by Return on Assets  (ROA). This research implements a quantitative approach with a sample consisting of 27 companies that have been determined using the purposive sampling method. This study uses multiple linear regression analysis techniques and path analysis with the Sobel test to see the mediating effect of intervening variables. The research shows that the results of the leverage test have no effect on profitability, company size has no effect on profitability and liquidity has a positive and significant effect on profitability. Furthermore, leverage has a positive and significant effect on firm value, firm size has no effect on firm value, liquidity has a negative and significant impact on firm value and return on assets has a positive and significant effect on firm value. Meanwhile, the Sobel test shows results where return on assets is unable to mediate the relationship between leverage on firm value, firm size on firm value and liquidity on firm value.