International Journal of Research and Review DOI: https://doi.org/10.52403/ijrr.20210748 Vol.8; Issue: 7; July 2021 Website: www.ijrrjournal.com Research Paper E-ISSN: 2349-9788; P-ISSN: 2454-2237 International Journal of Research and Review (ijrrjournal.com) 344 Vol.8; Issue: 7; July 2021 The Effect of Profitability and Liquidity on Firm Value with Leverage as Moderating Variable in Companies That are Joined in LQ45 and Listed on the Indonesia Stock Exchange for the Period 2007-2019 Regina Clara Febrinta Br Bukit 1 , Iskandar Muda 1 , Erwin Abubakar 1 1 Department of Accounting, Faculty of Economics and Business at Universitas Sumatera Utara, Indonesia Corresponding Author: Regina Clara Febrinta Br Bukit ABSTRACT The research objective was to examine and analyze the effect of profitability and liquidity on firm value in companies corporated in LQ 45 and listed on the Indonesia Stock Exchange and test whether leverage can moderate the relationship between the independent and dependent variables. This research is causal research using secondary data. The population of this study is companies that are members of the LQ45 on the Indonesia Stock Exchange from 2007 to 2019. The method of determining the sample uses purposive sampling so that a sample of 10 companies is multiplied by 13 years of research to obtain 130 observations. The analysis technique used in this study uses multiple linear regression analysis and moderating tests with the R Studio tools. The results of this study simultaneously profitability and liquidity have a significant effect on firm value. The results partially profitability has a significant positive effect on firm value, liquidity has an insignificant negative effect on firm value. Meanwhile, for simultaneous moderating, the results show that leverage can moderate the relationship between profitability and liquidity simultaneously on firm value, and partially leverage cannot moderate the relationship between profitability and firm value. Leverage is not able to moderate the relationship between liquidity and firm value. Keywords: profitability, liquidity, leverage, firm value INTRODUCTION Entering the era of industry 4.0, companies need investors to help support the company's development. Companies must develop strategies for transformation and innovation to compete with other companies. One of the company's strategies is to increase company value. Firm value is a condition that describes the achievement of a company (Othman & Haron, 2021). Where the value of the company is good, the company will be viewed well by potential investors. Firm value is an indicator used by investors to be used as a benchmark for assessing a company before investing. Firm value is defined as investors' perception of the company's level of success in managing resources as reflected in the company's stock price at the end of the current year (Machmuddah et al., 2020). The higher the stock price, the higher the company's value and vice versa. With the lower company's stock price, the company's value will also be lower so that the company's performance will be considered less good (Husain et al., 2020). For companies that have not gone public, the company's value is some costs that prospective buyers are willing to pay if the company is sold. In contrast, for companies that have gone public, the company's value