Value determinants: The role of cash holdings, investment opportunity set, and institutional ownership with firm size as a moderator
Keywords:
Agency conflicts, Investment opportunities, Price to book value, Stock performanceAbstract
This study examines the effect of cash holdings, investment opportunity set (IOS), and institutional ownership on firm value in energy sector companies listed on the Indonesia Stock Exchange (IDX) during the 2020–2024 period. Firm size is also examined as a moderating variable. This research was motivated by the declining firm value of energy companies in recent years, which may be associated with inefficient cash management, risky investment decisions, and agency conflicts. Using panel data regression with a random-effects model, the results show that only IOS has a significant effect on firm value. Furthermore, firm size moderates the relationships between cash holdings, IOS, institutional ownership, and firm value. These findings indicate that company scale plays an important role in shaping how financial policy, investment opportunities, and ownership structure affect firm value. This study contributes to the literature by emphasizing the moderating role of firm size and provides practical implications for energy companies and investors in evaluating financial strategy and stock performance.
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