Capital Structure as a Mediating Factor in the Profitability and Firm Value Connection

Akhmadi (), Enok Nurhayati and Muhamad Miftahul Rahman
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Akhmadi: Universitas Sultan Ageng Tirtayasa
Enok Nurhayati: Universitas Sultan Ageng Tirtayasa
Muhamad Miftahul Rahman: Universitas Sultan Ageng Tirtayasa

A chapter in Proceedings of the International Colloquium on Business and Economics (ICBE 2022), 2022, pp 21-36 from Springer

Abstract: Abstract As an intervening variable of coloration profitability, this study aims to ascertain the impact of capital structure on firm value. The research sample is. 15 corporations from 20 state-owned businesses listed on the Indonesia Stock Exchange (IDX) between 2010 and 2018 made up the research sample. The number of research samples is determined using the purposive sampling technique. The analytic data techniques used were descriptive statistics, the classic assumption test, the partial hypothesis test, and the intervening test. The study’s findings demonstrate that the price-to-book value increases as the return on equity increases. The debt-to-equity ratio decreases as the return on equity increases. The debt-to-equity ratio negatively and negligibly impacts price-to-book value. The debt-equity ratio does not mediate the relationship between return on equity and price-to-book value.

Keywords: PBV; ROE; DER (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:spr:advbcp:978-94-6463-066-4_4

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DOI: 10.2991/978-94-6463-066-4_4

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