COMPANY VALUE: THE ROLE OF CAPITAL STRUCTURE AND COMPANY PROFITABILITY GROWTH

  • M. Firza Alpi Universitas Muhammadiyah Sumatera Utara

Abstract

This study aims to examine and analyze the effect of capital structure, firm growth and profitability on firm value in manufacturing companies listed on the Indonesia Stock Exchange (IDX) for the 2017 - 2019 period. This study uses an associative approach. Data collection techniques in this study using documentation techniques. The data analysis technique in this research is using descriptive statistical analysis, multiple linear regression analysis, classical assumption test, hypothesis testing, and the coefficient of determination with a significance level of 5%. The results of this study indicate that the capital structure as measured by the Debt to Equity Ratio (DER) has a negative and significant effect on firm value as measured by Price Book Value (PBV). Company growth has a positive and insignificant effect on firm value (PBV). Profitability as measured by using Return On Equity (ROE) has a positive and insignificant effect on Company Value (PBV) and capital structure, company growth and profitability together have a significant effect on company value in manufacturing companies listed on the Indonesia Stock Exchange for the period 2017 -2019.

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Published
2021-08-15
How to Cite
ALPI, M. Firza. COMPANY VALUE: THE ROLE OF CAPITAL STRUCTURE AND COMPANY PROFITABILITY GROWTH. International Proceeding of Law and Economic, [S.l.], p. 112-117, aug. 2021. Available at: <https://jurnal.pancabudi.ac.id/index.php/iple/article/view/3913>. Date accessed: 24 may 2024.