The Influence of Company Size and Capital Structure towards Liquidity, Corporate Performance and Firm Value, for Large and Small Group Companies

Abstract

This research conducted based on a deep curiosity towards the issues of which among the key variables that will genuinelly influence a company profitability and the Firm Value. Clustering the companies by it’s asset size ie. Large and Small Groups, was offered as the novelty of this research. Statistical testing method employed is Generalized Structured Component Analysis (GSCA) to measure the influence of Company Size and Capital Structure towards Liquidity, Financial Performance and Firm Value and to prove the moderation between the two company size clusters. This research found that essentially there was a significant different characteristic between the two groups, regarding the influence of the endogenic variables towards exogenic variable. It is then considered as a new contribution to the academic world, that the influence of endogenic variables towards exogenic variables are not identical one to another, when there is different assets size involved.

Keywords: Asset Size Grouping, Company Size, Capital Structure, Financial Performance, Liquidity, Firm Value, GSCA