The Influence of Investment Opportunity Set, Leverage and Profitability on Financial Performance Moderated by Company Size During the Covid-19 Pandemic

This research provides both analytical and experimental validation of key functions and characteristics, focusing on the impact of the Investment Opportunity Set, Leverage, and Profitability on financial performance, with company size serving as a moderating variable. The study is particularly relevant in the context of manufacturing firms during the Covid-19 pandemic. It employs a quantitative approach utilizing secondary data, specifically examining manufacturing companies listed on the Indonesia Stock Exchange (BEI) from 2020 to 2022. To select samples, the research utilizes a purposive sampling technique, yielding a final sample of 39 manufacturing companies within the consumer goods sector for the specified period. Hypothesis testing and data analysis were conducted using multiple linear regression and moderated regression analysis (MRA), supported by SPSS version 22. The findings reveal that profitability positively affects financial performance, while both the Investment Opportunity Set and Leverage have no significant impact. Additionally, company size does not serve as a moderating factor for the relationship between the Investment Opportunity Set and leverage on financial performance. However, it does moderate the relationship between profitability and financial performance.