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

Abstract

This research examined the effect of profitability, firm size, and capital structure on firm value. The research was
quantitative. Moreover, the population was mining companies listed on the Indonesia Stock Exchange (IDX).
The data collection technique used purposive sampling. In line with that, 13 companies fulfilled the criteria as
the sample, with 52 observation data. Furthermore, the data analysis technique used multiple linear regression.
The result showed that (1) profitability, referred to as Return On Asset (ROA), had a positive effect on firm
value. It meant that the investors took profitability as a sign that the companies’ management could manage the
source well and gain profits which stabilized the firm value; (2) firm size did not affect firm value. In other
words, firm value was mostly affected by financial performance, business strategy, and innovation rather than
firm size; (3) capital structure, referred to as Debt to Equity (DER), did not affect firm value.