PENGARUH STRUKTUR MODAL, PROFITABILITAS DAN UKURAN PERUSAHAAN TERHADAP NILAI PERUSAHAAN PADA PERUSAHAAN MANUFAKTUR TAHUN 2018-2020

Abstract

The firm value was used to describe the company’s prospects in the futureand it was used to assess the company
as a whole. The firm value could be reflectedin the stock price. Investors could decide to invest by looking at the
company's stockprice. If the company's stock price increased, then the firm value was getting better. This research
aimed to examine the empirical effect of the capital structure, profitability and firm size on the firm value. The
research sample used a manufacturing company on the firm value. Furthermore, the research sample used a
manufacturing company listed on the Indonesia stock exchange (IDX) during the 2018-2020 periods. This
research used a purposive sampling method, and it was 78 companies. Moreover, the research data used
multiple linear regression. The research result concluded that capital structure did not affect the firm value.
Because the debt level performed by the company was over the limit, the firmvalue had experienced a decrease.
Meanwhile, profitability affected the firm value.It was because of a good company performance produced high
profits so that it increased a firm value. Firm size didnot affect the firm value. This was because thelarge ones have
not been able to generate good profits and did not have large corporate debts.