The influence of capital structure, its size, growth of the value of the company with its profitability as variable intervening the company LQ45 are listed in Indonesia stock exchange

Mgs. Abdul Hakim Fahmi; Mohamad Adam; Marlina Widiyanti; Isnurhadi Isnurhadi

doi:10.21744/ijbem.v5n1.1805

Authors

Mgs. Abdul Hakim Fahmi
abdulhakimfahmi@gmail.com
Master of Management, Sriwijaya University, Palembang, Indonesia
Mohamad Adam Lecturer of Magister Management, Economic Faculty, Sriwijaya University, Palembang, Indonesia
Marlina Widiyanti Lecturer of Magister Management, Economic Faculty, Sriwijaya University, Palembang, Indonesia
Isnurhadi Lecturer of Magister Management, Economic Faculty, Sriwijaya University, Palembang, Indonesia

Keywords:

capital structure, company growth, company size, company's value, profitability

Abstract

This study aimed to determine the effect of capital structure, firm size, firm growth on firm value with profitability as an intervening variable in LQ45 companies listed on the Indonesia Stock Exchange in 2018-2020. The sample used is 33 LQ45 companies during the period 2018-2020. This research uses multiple linear regression and path analysis. The results showed that the capital structure had a significant adverse effect on profitability and firm value. Meanwhile, firm size and growth do not significantly affect profitability and firm value. Profitability has a significant positive effect on firm value. Indirectly, capital structure affects firm value through profitability, while firm size and growth do not indirectly affect firm value.

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