PENGARUH STRUKTUR MODAL, PROFITABILITAS, DAN UKURAN PERUSAHAAN TERHADAP NILAI PERUSAHAAN

Abstract

This research aimed to examine the effect of capital structure, profitability, and firm size on firm value (Empirical Study of Manufacturing companies which were listed on IDX). The research was quantitatibe with 67 manufacturing companies which were listed on Indonesia Stock Exchange during 2016-2019, as the sample. Moreover, the data collection technique used purposive sampling in which the sample was based on criteria given. Furthermore, the data analysis technique used multiple linear regression with SPSS (Statistical Product and Service Solution) 20. The research result concluded that as follows: (1) capital structure did not affect firm value since though the structure was higher or lower, it still was followed by good management which could improve profit and internal retrun, (2) profitability had a positive effect on frim value as it saited with signalling theory. The higher the Return On Equity (ROE) was, the more positive a signal to investors would be. This showed companies’ prospects were more efficient, (3) firm size had a positive effect on firm value because by having a stable asset; investors would be interested in buying companies’ stock. This woukd trigger the rise of the stock. As s result, the firm value would be higher also.
Keywords: capital structure, profitability, firm size, firm value