Profitability as a Mediator of Firm Size and Sales Growth in Driving Innovation for Sustainable Business in the Green Economy

Febriana Louw

Abstract

The purpose of this study was to analyze whether profitability is able to mediate firm size and sales growth on firm value. Associative research form. The object of research in the Transportation and Logistics Sector Company on the Indonesia Stock Exchange (IDX) from 2018 to 2022 with a population of 30 companies. Determination of the sample using purposive sampling method so that 15 sample companies were obtained. Data collection techniques with documentation studies. The data analysis stages include descriptive statistical analysis, classical assumption testing, multiple linear regression analysis, path analysis, correlation and coefficient of determination, F test, t test and path coefficient in the form of a sobel test. The analysis results show that the research model built in this study is feasible. Firm size has no effect on firm value and profitability, sales growth has a negative effect on firm value and profitability. Profitability cannot mediate the relationship between firm size and firm value and profitability can mediate the relationship between sales growth and firm value.