Capital Structure as a Mediating Factor in the Profitability and Firm Value Connection

DOI

10.2991/978-94-6463-066-4_4How to use a DOI?

Keywords

PBV; ROE; DER

Abstract

As an intervening variable of coloration profitability, this study aims to ascertain the impact of capital structure on firm value. The research sample is. 15 corporations from 20 state-owned businesses listed on the Indonesia Stock Exchange (IDX) between 2010 and 2018 made up the research sample. The number of research samples is determined using the purposive sampling technique. The analytic data techniques used were descriptive statistics, the classic assumption test, the partial hypothesis test, and the intervening test. The study’s findings demonstrate that the price-to-book value increases as the return on equity increases. The debt-to-equity ratio decreases as the return on equity increases. The debt-to-equity ratio negatively and negligibly impacts price-to-book value. The debt-equity ratio does not mediate the relationship between return on equity and price-to-book value.

Copyright

© 2022 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Akhmadi
AU  - Enok Nurhayati
AU  - Muhamad Miftahul Rahman
PY  - 2022
DA  - 2022/12/26
TI  - Capital Structure as a Mediating Factor in the Profitability and Firm Value Connection
BT  - Proceedings of the International Colloquium on Business and Economics (ICBE 2022)
PB  - Atlantis Press
SP  - 21
EP  - 36
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-066-4_4
DO  - 10.2991/978-94-6463-066-4_4
ID  - 2022
ER  -