Financial Leverage, Political Connection, Profitability and Firm Value During Global Crisis Era: A Moderated Mediation Analysis

The purpose of this study is to look at the role of profitability as a mediator and political connections as moderators in the link between financial leverage and business value during the previous fifteen years of the global crisis.The study included 240 observations across 16 property and real estate businesses between 2008 and 2022.The investigation began in 2008, following Indonesia's substantial crisis caused by the fall of Lehman Brothers.The pick of the property and real estate industry was based on current events, such as the bankruptcy of China's largest corporation, Evergrande.The research data were analyzed using the Process Macro SPSS Hayes Model 7. The findings of this study align with signaling theory.This research has investigated how, whether, and when political connections to financial leverage influence profitability and firm value.Additional tests in this study utilized six models.The results from these six models demonstrate that the research model remains robust and consistent, and is not dependent on specific models and assumptions.The sample consisted only of publicly listed companies in the property and real estate industries.The novelty of this study stems from the research approach, namely the utilization of profitability as a mediator and political connection as a moderator.The research phenomenon is related to the collapse of Evergrande in China and the global crisis era faced by Indonesia since 2008.