THE EFFECT OF FIRM SIZE, INVESTMENT OPPORTUNITY SET AND CAPITAL STRUCTURE ON FIRM VALUE
, Uniqbu
No ksp94, OSF Preprints from Center for Open Science
Abstract:
This study aimed to analyze the effect of firm size, investment opportunity set, and capital structure on the firm value. This study was explanatory research which uses secondary data in the form of financial statement data obtained from banking industry companies on the Indonesia Stock Exchange for 10 years, the period 2010 - 2019 which is published in the Indonesian Capital Market Directory. The samples were taken by using purposive sampling technique, twenty-seven companies during the last 10 years. It used the path analysis method with the AMOS application. The results of this study found that firm size and Investment Opportunity Set had affected significantly on the firm value, while capital structure has no effect on firm value. The implication of this research is that it should have a strong basis for the investment, especially in the banking industry. And it is necessary to look at several criteria for listed companies for example by considering the size of the company and the investment opportunity set because it is proven that these criteria can increase firm value significantly. Meanwhile, the capital structure should be determined because it had not affected the firm value.
Date: 2022-08-08
New Economics Papers: this item is included in nep-cfn and nep-sea
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Persistent link: https://EconPapers.repec.org/RePEc:osf:osfxxx:ksp94
DOI: 10.31219/osf.io/ksp94
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