PENGARUH PROFITABILITAS DAN STRUKTUR MODAL PADA NILAI PERUSAHAAN

Abstract

This research aimed to fnd out the effect of profitability and capital structure on firm value. Furthermore, profitability was measured by return on equity meanwhile, the capital structure measured by debt to equity ratio, while firm value is measured by price to book value. This research was conducted on manufacturing companies listed on Indonesia Stock Exchange (IDX) during the periods of 2016-2019. On the other hand, this research was quantitative with causal-comperative to find out the cause and affect among the variables. Meanwhile, the research sample used 101 companies with the purposive sampling method, i.e. the researcher determined by the researcher’s criteria. Besides, the data analysis technique used multiple linear regressions. Moreover, based on the research result it can be concluded that profitability had a positive effect on the firm value which means that the higher the level of profitability indicates that the company is able to get benefits for shareholders and capital structure had a positive effect on the firm value which means the use of debt in a company can show future business prospects.
Keywords: profitability, capital structure, firm value