Proceedings of the 8th International Conference on Entrepreneurship and Business Management (ICEBM 2019) UNTAR

The Effect of Capital Structure and Firm Size on Firm Value Through Profitability as Intervening Variable

Authors
Khairina Natsir, Yusbardini Yusbardini
Corresponding Author
Khairina Natsir
Available Online 29 June 2020.
DOI
https://doi.org/10.2991/aebmr.k.200626.040How to use a DOI?
Keywords
Firm Value, Profitability, Capital Structure, Firm Size, Intervening Variable
Abstract
The aim of this study was to investigate the effect of capital structure and firm size on firm value through profitability as an intervening variable. This study was conducted among manufacturing companies in various industrial sectors in Indonesia Stock Exchange (IDX) during the period 2013-2017. The dependent variable was the value of the firm measured by PBV. The independent variables were the capital structure measured by DER and firm value measured by ln (total assets). Profitability as intervening variable was measured by ROA. This study used secondary data extracted from the financial statements of 17 public companies. Analysis was conducted using multiple regression of panel data, path analysis and sobel test. The results showed that firm size and capital structure had significant effect on profitability, while firm size, capital structure and profitability had significant effect on firm value. The results also showed that profitability was able to mediate the effect of firm size and capital structure on firm value.
Open Access
This is an open access article distributed under the CC BY-NC license.

Download article (PDF)

Proceedings
8th International Conference of Entrepreneurship and Business Management Untar (ICEBM 2019)
Part of series
Advances in Economics, Business and Management Research
Publication Date
29 June 2020
ISBN
978-94-6252-980-9
ISSN
2352-5428
DOI
https://doi.org/10.2991/aebmr.k.200626.040How to use a DOI?
Open Access
This is an open access article distributed under the CC BY-NC license.

Cite this article

TY  - CONF
AU  - Khairina Natsir
AU  - Yusbardini Yusbardini
PY  - 2020
DA  - 2020/06/29
TI  - The Effect of Capital Structure and Firm Size on Firm Value Through Profitability as Intervening Variable
BT  - 8th International Conference of Entrepreneurship and Business Management Untar (ICEBM 2019)
PB  - Atlantis Press
SP  - 218
EP  - 224
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.200626.040
DO  - https://doi.org/10.2991/aebmr.k.200626.040
ID  - Natsir2020
ER  -