The Effect of Capital Structure and Firm Size on Firm Value Through Profitability as Intervening Variable

DOI

10.2991/aebmr.k.200626.040How to use a DOI?

Keywords

Firm Value, Profitability, Capital Structure, Firm Size, Intervening Variable

Abstract

The aim of this study was to investigate the effect of capital structure and firm size on firm value through profitability as an intervening variable. This study was conducted among manufacturing companies in various industrial sectors in Indonesia Stock Exchange (IDX) during the period 2013-2017. The dependent variable was the value of the firm measured by PBV. The independent variables were the capital structure measured by DER and firm value measured by ln (total assets). Profitability as intervening variable was measured by ROA. This study used secondary data extracted from the financial statements of 17 public companies. Analysis was conducted using multiple regression of panel data, path analysis and sobel test. The results showed that firm size and capital structure had significant effect on profitability, while firm size, capital structure and profitability had significant effect on firm value. The results also showed that profitability was able to mediate the effect of firm size and capital structure on firm value.

Copyright

© 2020, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Khairina Natsir
AU  - Yusbardini Yusbardini
PY  - 2020
DA  - 2020/06/29
TI  - The Effect of Capital Structure and Firm Size on Firm Value Through Profitability as Intervening Variable
BT  - Proceedings of the 8th International Conference on Entrepreneurship and Business Management (ICEBM 2019) UNTAR
PB  - Atlantis Press
SP  - 218
EP  - 224
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.200626.040
DO  - 10.2991/aebmr.k.200626.040
ID  - Natsir2020
ER  -