The Influence of Operating Cash Flow, Leverage, and Capital Intensity on Firm Value with Profitability as a Moderating Variable in the Palm Oil Industry Listed on the Indonesia Stock Exchange (IDX) for the Period 2020–2025
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Abstract
This study examines and analyzes the influence of operating cash flow (OCF), leverage (DER), and capital intensity (CIR) on firm value—proxied by Tobin's Q—and investigates the moderating role of profitability (NPM) in those relationships. The study focuses on 17 palm oil companies within the Consumer Non-Cyclicals sector (Plantations & Crops sub-industry) listed on the Indonesia Stock Exchange (IDX) during the 2020–2025 period. A quantitative approach was employed using balanced panel data comprising 102 observations (17 companies × 6 years). Analysis was conducted using panel data regression and Moderated Regression Analysis (MRA) with EViews software. Model selection applied the Chow Test, Hausman Test, and Lagrange Multiplier Test, resulting in the Fixed Effect Model (FEM) as the most appropriate specification. FEM results indicate that operating cash flow (coef. 4.3675; p = 0.000), leverage (coef. 0.0593; p = 0.000), and capital intensity (coef. 1.0844; p = 0.000) each have a positive and significant effect on Tobin's Q. MRA results reveal that profitability (NPM) positively moderates the relationships of OCF (coef. 37.5899; p = 0.000) and DER (coef. 0.3489; p = 0.019) with Tobin's Q, while negatively moderating the relationship of CIR (coef. −3.6754; p = 0.000) with Tobin's Q. The model explains 97.72% of the variation in firm value (R² = 0.9772; F = 185.04; p = 0.000). These findings contribute empirical evidence on the simultaneous importance of cash flow efficiency, leverage management, and asset intensity in shaping market valuation within Indonesia's palm oil industry.
Keywords:
Operating Cash Flow Leverage Capital Intensity Firm Value Profitability Tobin's Q Palm Oil Indonesia Stock ExchangeReferences
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