Title:
Liquidity as Moderator: Affect Business Risk to Company Value

Authors:
Hilary Flora AT Lasar, Magda Siahaan*, Indonesia

Abstract:

This study aims to analyze the influence of Intellectual Capital, Business Risk, Asset Turnover, and Liquidity on the value of manufacturing companies consistently listed on the Indonesia Stock Exchange and the moderating role of liquidity. Using a causality design with 183 secondary data, the analysis was carried out through panel data regression using STATA. Findings show that well-managed IC increases company value through innovation and competitive advantage, while high business risk decreases value due to declining investor confidence. High asset turnover reflects management efficiency and positively impacts company value. Liquidity strengthens the influence of IC on company value by supporting strategic funding, but due to limited liquidity in the long term, it does not significantly moderate the influence of business risk and asset turnover. Practical implications emphasize increasing liquidity, mitigating business risk, and sustainable operational efficiency. Management is advised to manage cash optimally, develop an aggressive yet stable investment strategy, and communicate the strength of IC supported by liquidity to attract investors. This study's limitations lie in using secondary data in a short period. Further research is advised to examine innovation performance as a moderating variable, include external factors such as economic conditions and government policies, and use a qualitative approach to explore IC management practices and innovation in real companies.

DOI: https://doi.org/10.51505/IJEBMR.2025.9620