PENGARUH PROFITABILITAS DAN UKURAN PERUSAHAAN TERHADAP NILAI PERUSAHAAN DIMEDIASI OLEH STRUKTUR MODAL PADA PERUSAHAAN FARMASI DI BURSA EFEK INDONESIA TAHUN 2017 – 2021

Abstract

This research aimed to examine the effect of profitability and firm size on the firm value at Pharmaceutical companies listed on the Indonesia Stock Exchange (IDX) 2017-2021, with capital structure as a mediating variable. Moreover, the research was quantitative. The data collection technique used purposive sampling i.e., a sample selection with determined criteria. In line with that, there were 7 companies as the research object. Furthermore, the data analysis technique used Partial Least Square (PLS) with SmartPLS 3.0 software as the calculation instrument. The PLS was used as it determined the method in all data scales and did not require many assumptions. Besides, it was oriented to predict the constructed variable in developing the theory. The result showed that profitability, firm size, and capital structure had a significant effect on firm value. Additionally, profitability had a significant effect on capital structure. However, firm size did not affect capital structure. In addition, the capital structure could mediate the effect of profitability on firm value. On the other hand, capital structure could not mediate the effect of firm size on firm value.