Impact of Investment Decisions, Capital Structure, and Firm Size on Profitability and Sustainable Growth, Moderated by Financial Flexibility in Construction Firms

Bela Septiana ; Tri Ratnawati ; Ida Ayu Sri Brahmayanti
International Journal of Management Science and Bu... 📅 2025 Vol 2, No 2 🔗 DOI: 10.70062/harmonymanagement.v2i2.254
Abstract
This study aims to analyze the effect of investment decisions, capital structure, company size on profitability and Sustainable Growth, with profitability as a mediating variable and Financial Flexibility as a moderating variable. Data is obtained from secondary sources, namely audited financial reports from heavy construction and civil engineering subsector companies listed on the Indonesia Stock Exchange (IDX) for the 2019-2023 period. The analysis was carried out using Structural Equation Modeling based on Partial Least Squares (SEM-PLS). The results showed that investment decisions, capital structure, and company size have a significant effect on profitability. However, only company size has a significant effect on Sustainable Growth. Investment decisions and capital structure have no significant effect on Sustainable Growth. Profitability also has an insignificant effect on Sustainable Growth and does not mediate the relationship between variables. In addition, financial flexibility does not moderate the relationship between profitability and sustainable growth. This finding indicates that increased profitability is more influenced by investment strategy, capital structure, and firm scale, but does not necessarily translate directly into Sustainable Growth.
Keywords
Capital Structure; Financial Flexibility; Firm Size; Investment Decisions; Profitability; Sustainable Growth
How to Cite

Bela Septiana, et al. (2025). Impact of Investment Decisions, Capital Structure, and Firm Size on Profitability and Sustainable Growth, Moderated by Financial Flexibility in Construction Firms. International Journal of Management Science and Business, 2(2). https://doi.org/10.70062/harmonymanagement.v2i2.254

Bela Septiana; Tri Ratnawati; Ida Ayu Sri Brahmayanti, "Impact of Investment Decisions, Capital Structure, and Firm Size on Profitability and Sustainable Growth, Moderated by Financial Flexibility in Construction Firms," International Journal of Management Science and Business, vol. 2, no. 2, 2025.

Bela Septiana; Tri Ratnawati; Ida Ayu Sri Brahmayanti. "Impact of Investment Decisions, Capital Structure, and Firm Size on Profitability and Sustainable Growth, Moderated by Financial Flexibility in Construction Firms." International Journal of Management Science and Business, vol. 2, no. 2, 2025.

Bela Septiana; Tri Ratnawati; Ida Ayu Sri Brahmayanti. "Impact of Investment Decisions, Capital Structure, and Firm Size on Profitability and Sustainable Growth, Moderated by Financial Flexibility in Construction Firms." International Journal of Management Science and Business 2, no. 2 (2025).

Bela Septiana, et al. (2025) 'Impact of Investment Decisions, Capital Structure, and Firm Size on Profitability and Sustainable Growth, Moderated by Financial Flexibility in Construction Firms', International Journal of Management Science and Business, 2(2). doi: 10.70062/harmonymanagement.v2i2.254.

Bela Septiana; Tri Ratnawati; Ida Ayu Sri Brahmayanti. Impact of Investment Decisions, Capital Structure, and Firm Size on Profitability and Sustainable Growth, Moderated by Financial Flexibility in Construction Firms. International Journal of Management Science and Business. 2025;2(2).

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