The Influence of Brand Awareness on Purchase Decision with Social Media as an Intervening Variable: Penelitian

Maryanta Maryanta; Selvi Yuliawati; I Nyoman Simpen; Dwi Zarlis; Ni Wayan Lia Apriani

doi:10.31004/jerkin.v5i1.7710

Authors

Maryanta Maryanta STIE Kusuma Negara
Selvi Yuliawati STIE Kusuma Negara
I Nyoman Simpen STIE Kusuma Negara
Dwi Zarlis STIE Kusuma Negara
Ni Wayan Lia Apriani Politeknik Negeri Bali

DOI:

https://doi.org/10.31004/jerkin.v5i1.7710

Keywords:

Profitability, Leverage, Firm Size, Firm Value, Dividend Policy, Intervening Variable, PLS-SEM.

Abstract

This study aims to empirically analyze and examine the influence of profitability, leverage, and firm size on firm value, with dividend policy acting as an intervening (mediating) variable. In a dynamic and competitive financial market landscape, maximizing firm value remains the primary objective of corporate financial management to enhance shareholder wealth (Brigham & Ehrhardt, 2020). The proposed research methodology employs an explanatory quantitative approach using secondary financial data from publicly listed companies on the stock exchange (Hair et al., 2021). Hypothesis testing is executed through Partial Least Squares Structural Equation Modeling (PLS-SEM) to assess both direct and indirect structural relationships among the constructs (Ringle et al., 2020). The conceptual framework is grounded in signaling theory, trade-off theory, and pecking order theory (Myers & Majluf, 1984; Spence, 1973). Theoretical synthesis reveals that profitability and firm size positively impact firm value, whereas leverage exerts a contingent influence based on the capital structure risk profile (Gitman & Zutter, 2015). Furthermore, dividend policy is demonstrated to partially mediate the relationship between financial performance, firm scale, and market valuation, reinforcing the signaling mechanism of dividend payouts to external investors (Bhattacharya, 1979; Lintner, 1956). The practical implications of this research provide strategic insights for corporate financial executives in tailoring capital structure and payout decisions to drive market appreciation.

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