Investigating the Impact of Profitability, Liquidity, and Size on Firm Value with an Emphasis on the Moderating Role of Sustainability Reporting

Heidari Amirkalaei, Ali Akbar

doi:10.22034/jmek.2025.243140

Investigating the Impact of Profitability, Liquidity, and Size on Firm Value with an Emphasis on the Moderating Role of Sustainability Reporting

Document Type : Original Article

Author

Ali Akbar Heidari Amirkalaei

Department of Accounting, Bab.C., Islamic Azad University, Babol, Iran.

10.22034/jmek.2025.243140

Abstract

The aim of this research was to investigate the impact of profitability, liquidity, and size on firm value, with an emphasis on the moderating role of sustainability reporting. This study was conducted within a deductive-inductive reasoning framework and is classified as applied research. The statistical population comprised all companies listed on the Tehran Stock Exchange (TSE) during the years 2019 to 2023. A total of 108 companies that were consistently active on the exchange throughout the entire research period were selected and examined. The research data were extracted from the companies' financial statements and analyzed using regression models based on the panel data method. The findings of the study revealed that examining the impact of profitability, liquidity, and size on firm value, with an emphasis on the moderating role of sustainability reporting, had a significant effect. Companies can enhance their profitability, liquidity, and size, and by efficiently utilizing sustainability reporting, achieve sustainable and long-term value. These measures not only contribute to increasing firm value but also foster trust among investors and other stakeholders.

Keywords

Profitability

Liquidity

Firm Size

Firm Value

Sustainability Reporting

Subjects