The Influence of Capital Structure and Institutional Ownership on Firm Value with CSR as a Moderating Variable

Abstract

This study aims to examine the influence of capital structure and institutional ownership on firm value, with Corporate Social Responsibility (CSR) as a moderating variable, in manufacturing companies within the basic and chemical industries subsector listed on the Indonesia Stock Exchange for the period 2020–2024. This study employs a quantitative method using secondary data obtained from companies’ annual reports and sustainability reports. The sampling technique employed purposive sampling, resulting in 26 companies selected as the research sample, comprising a total of 130 observations. The data analysis techniques used were multiple linear regression and Moderated Regression Analysis (MRA) using SPSS version 25. The results indicate that capital structure has a significant effect on firm value. Institutional ownership also has a significant effect on firm value. Furthermore, Corporate Social Responsibility (CSR) has a significant effect on firm value. However, CSR is unable to moderate the relationship between capital structure and firm value, nor the relationship between institutional ownership and firm value. These findings suggest that investors still view high levels of debt and CSR disclosures as factors that can increase a firm’s financial burden, thereby leading to a decline in firm value.