The Effect of Investment Opportunity Set on Firm Value with Profitability as a Moderating Variable in the IDX Energy Sector 2022-2024

Abstract

Firm value is a key barometer reflecting market assessments of a corporation's achievements and future projections. This research focuses on examining the impact of investment opportunities on firm value, with profitability as a moderating factor, across all companies listed on the IDX, particularly in the energy sector, from 2022 to 2024. Purposive sampling was used to select the sample, resulting in 51 observations and 153 data points. Moderated Regression Analysis (MRA) was used for data processing using EViews 13 software. Empirical findings demonstrate that investment opportunities have a unidirectional and significant impact on firm value (PBV). However, profitability (ROA) does not appear to moderate the relationship between investment opportunities and firm value. This clarifies that investor groups within the energy sector allocate a higher priority toward long-term growth capacity rather than short-term earnings variations when assessing a company's market worth.