Combining source code into a single file for optimization

I was aiming at reducing the size of the executable for my C project and I have tried all compiler/linker options, which have helped to some extent. My code consists of a lot of separate files. My question was whether combining all source code into a single file will help with optimization that I desire? I read somewhere that a compiler will optimize better if it finds all code in a single file in place of separate multiple files. Is that true?