MODERATION OF CORPORATE GOVERNANCE AND THE EFFECT OF PROFITABILITY, LEVERAGE, COMPANY SIZE, AND DIVIDEND POLICY ON SUSTAINABLE FINANCIAL PERFORMANCE

Abstract

The purpose of this study is to investigate, know, and analyze the effect of corporate governance in moderating the effect of profitability, leverage, company size, and dividend policy on company value. The object of research in this study is the LQ45 Index listed on the Indonesia Stock Exchange for the 2017-2022 period. We use associative quantitative methods. The number of samples in this study based on criteria was obtained as many as 90 data from 15 companies for 6 years with the EViews testing tool. The analysis techniques used are descriptive statistical analysis, panel data regression testing, classical assumption testing, and interaction testing (MRA). The results showed that some profitability and dividend policies had a positive and significant effect on the value of the company, while leverage and company size did not have a significant effect on the value of the company. While the interaction test (MRA) results show that corporate governance can moderate profitability and dividend policy affects company value, corporate governance cannot moderate the effect of leverage and company size on company value. These findings provide valuable insights for companies in structuring sustainability activities and shaping dividend policies related to ownership structures. It also offers policy prescriptions on the Indonesia Stock Exchange in the field of corporate financing policies.