Company Profitability and Size as A Description of Capital Structure and Its Effect on Company Value in Food and Beverage Companies in Indonesia Stock Exchange

Abstract

This study aims to analyze profitability, company size and capital structure on firm value. The population in this study is the food and beverage sub-sector companies listed on the main board on the Indonesia Stock Exchange. The sample used is as many as 60 samples calculated based on 10 companies for the period 2014-2019. The sampling method used was purposive sampling. The data analysis method used descriptive method and panel data regression. This study proves that profitability and firm value do not have a significant effect on capital structure. Profitability and capital structure have a significant positive effect on firm value. Firm size has no positive effect on firm value.

Keywords: Profitability, company size, capital structure, firm value, food and beverage sub-sector.

DOI: 10.7176/EJBM/13-11-06

Publication date:June 30^th 2021