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Determinants Of Profitability And Firm Values In The Manufacturing Sector Of Firms In Indonesia

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  • Niar, Hikma

Abstract

This study investigates the Determinants of profitability and firm values in the Manufacturing Sector of Firms in Indonesia. A total of 55 companies listed on the Indonesia Stock Exchange were used as samples. Observation data is used from 2014 to 2016. The Structural Equation Modeling Test using analysis of moment structures ver. 22 provides evidence that Investment decisions has a positive and significant effect on profitability but not for firm values. Capital structure has a positive and significant effect on profitability but not for firm values. Company's growth has a positive and significant effect on profitability and firm values and then the last causality is Profitability has a positive and significant effect on firm values

Suggested Citation

  • Niar, Hikma, 2018. "Determinants Of Profitability And Firm Values In The Manufacturing Sector Of Firms In Indonesia," OSF Preprints 9azju_v1, Center for Open Science.
    • Handle: RePEc:osf:osfxxx:9azju_v1
    DOI: 10.31219/osf.io/9azju_v1
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    2. Smith, Clifford Jr. & Watts, Ross L., 1992. "The investment opportunity set and corporate financing, dividend, and compensation policies," Journal of Financial Economics, Elsevier, vol. 32(3), pages 263-292, December.
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