The Relationship Between Profitability and Firm Value: Evidence From Manufacturing Industry in Indonesia

Bambang, Sudiyatno and Elen, Puspitasari and Ida, Nurhayati and Tristiana, Rijanti The Relationship Between Profitability and Firm Value: Evidence From Manufacturing Industry in Indonesia. International Journal of Financial Research.

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Abstract

This study aims to test whether profitability acts as a moderating variable that is able to moderate the influence of the company growth and capital structure on the firm value. The independent variables used in this study are company growth and capital structure, while profitability is the moderating variable. The research sample was taken from manufacturing industrial companies listed on the Indonesia Stock Exchange (IDX) during the period 2016 - 2018. The study used panel data which is a combination of cross section and time series data, with data analysis using multiple regression. The results showed that company growth and profitability had a positive effect on the firm value, while capital structure had does not effect. The results of the analysis show that profitability does not moderate the effect of company growth and capital structure on the firm value, the interaction of company growth and capital structure with profitability has a negative impact on the firm value. Keywords: company growth, capital structure, profitability, firm value

Item Type:	Article
Subjects:	H Social Sciences > H Social Sciences (General)
Faculty / Institution:	Fakultas Ekonomika dan Bisnis
Depositing User:	Fakultas Ekonomi
Date Deposited:	26 Apr 2022 01:52
Last Modified:	26 Apr 2022 01:52
URI:	https://eprints.unisbank.ac.id/id/eprint/8353

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