PENGARUH PROFITABILITAS DAN LIKUIDITAS TERHADAP NILAI PERUSAHAAN DENGAN STRUKTUR MODAL SEBAGAI VARIABEL INTERVENING

Abstract

This research aimed to examine the effect of profitability and liquidity on the firm value with capital
structure as the intervening variable at Chemical and Base manufacturing companies listed in
Indonesia Stock Exchange 2019-2021. The research was quantitative. Moreover, the data were
secondary in the form of the company’s annual financial statements. The data collection technique
used purposive sampling. In line with that, there were 39 companies during 5 years of observation
(2019-2021) as the sample. Furthermore, the data analysis technique used multiple linear regression
with Path analysis and the Sobel test. The result indicated that both profitability and liquidity had a
negative effect on the capital structure. It meant that the higher both profitability and the company’s
liquidity was, the lower the capital structure would be; and vice versa. Profitability as well as the capital
structure had a positive effect on the firm value. This meant the direction of profitability and the
company's capital structure were in line with firm value. Liquidity did not affect the firm value. This
showed that the company’s liquidity did not determine the high or low of the firm value. Additionally, the
capital structure was able to mediate the relationship of profitability on firm value. It meant the
company’s profitability could determine its capital structure and then affected the increase of firm value.
In addition, liquidity did not affect the firm value. However, the capital structure was able to mediate the
relationship of liquidity on the firm value.