Profitability, Growth Opportunity, Capital Structure and The Firm Value

Sri Hermuningsih ()

Bulletin of Monetary Economics and Banking, 2013, vol. 16, issue 2, 115-136

Abstract: This paper examines the influence of profitability, growth opportunity, and capital structure on firm value. We apply Structural Equation Model (SEM) on 150 listed companies on the Indonesia Stock Exchange during 2006 to 2010. The result shows that profitability, growth opportunity and capital structure positively and significanctly affect the company’s value. Secondly, the capital structure intervene the effect of growth profitability on company’s value, but not for profitability.

Keywords: Profitability; Growth Opportunitiy; Capital Structure; Firm Value; SEM (search for similar items in EconPapers)
JEL-codes: C51 G32 L25 (search for similar items in EconPapers)
Date: 2013
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Persistent link: https://EconPapers.repec.org/RePEc:idn:journl:v:16:y:2013:i:2f:p:115-136

DOI: 10.21098/bemp.v16i2.440

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