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Capital Structure and Firm Size on Firm Value Moderated by Profitability

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  • Hirdinis M

Abstract

The purpose of this study is to determine the effect of capital structure and firm size on firm value, moderated by profitability. The sample of this research is mining sector companies listed on IDX. This research uses the non-participant observation method with path analysis technique. The method of data analysis used is multiple linear regression with data analysis tool using SPSS 22. Based on the analysis results, it was concluded that capital structure has a significant positive effect on firm value while firm size has a significant negative effect on firm value. Profitability has no significant effect on firm value, whilst company size has a significant positive effect on profitability. However, profitability is not able to mediate the influence of capital structure and firm size on firm value.

Suggested Citation

  • Hirdinis M, 2019. "Capital Structure and Firm Size on Firm Value Moderated by Profitability," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(1), pages 174-191.
    • Handle: RePEc:ers:ijebaa:v:vii:y:2019:i:1:p:174-191
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    1. Myers, Stewart C., 1977. "Determinants of corporate borrowing," Journal of Financial Economics, Elsevier, vol. 5(2), pages 147-175, November.
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    Cited by:

    1. Andrea Quintiliani, 2019. "Impact of Financial Transparency on SMEs’ Value," Journal of Applied Finance & Banking, SCIENPRESS Ltd, vol. 9(6), pages 1-15.
    2. Sevdie Alshiqi Bekteshi, 2020. "Firm Size Related to Export Performance," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(1), pages 51-61.
    3. Andrei Vladimirovich Glotko & Aleksandra Grigorievna Polyakova & Aleksandra Grigorievna Polyakova & Mariya Yurievna Kuznetsova & Kseniya E. Kovalenko & Rustem Adamovich Shichiyakh & Margarita V. Melni, 2020. "Main trends of government regulation of sectoral digitalization," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 7(3), pages 2181-2195, March.
    4. Nur LISTIANI & Supramono SUPRAMONO, 2020. "Sustainable Growth Rate: Between Fixed Asset Growth and Firm Value," Management and Economics Review, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 5(1), pages 147-159, June.
    5. I Gusti Ngurah Bagus Gunadi & I Gusti Bagus Wiksuana & Ida Bagus Anom Purbawangsa & Henny Rahyuda, 2020. "Impact of Structural Capital and Company Size on the Growth of Firm Value through Financial Performance with Good Corporate Governance as a Moderating Variable: Property and Real Estate Business in In," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(4), pages 332-352.
    6. Posnaya & E.A. & Vorobyova & I.G. & Ditsulenko O.I. & Kaznova & M.I., 2019. "Strategy and Tactics of Bank Capital Assessment," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(Special 2), pages 393-399.
    7. Bambang Sudiyatno & Elen Puspitasari & Ida Nurhayati & Tristiana Rijanti, 2021. "The Relationship Between Profitability and Firm Value: Evidence From Manufacturing Industry in Indonesia," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 12(3), pages 466-476, May.
    8. Muhammad Khafid & Rida Prihatni & Ira Eva Safitri, 2020. "The Effects of Managerial Ownership, Institutional Ownership, and Profitability on Capital Structure: Firm Size as the Moderating Variable," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 11(4), pages 493-501, July.
    9. Suratno & J.M.V. Mulyadi, 2020. "Taxes, Revenues and Capital Expenditure as Determinants of Financial Sufficiency of Regional Government," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(2), pages 283-290.
    10. Romana Pichova & Daniel Rauser, 2019. "Use of Management Audit by Small and Medium-Sized Enterprises in Business - Managerial Practice," European Research Studies Journal, European Research Studies Journal, vol. 0(2), pages 309-322.
    11. Akhmadi Akhmadi & Yeni Januarsi, 2021. "Profitability and Firm Value: Does Dividend Policy Matter for Indonesian Sustainable and Responsible Investment (SRI)-KEHATI Listed Firms?," Economies, MDPI, vol. 9(4), pages 1-23, November.

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