The Effect of Capital Structure, Company Growth, and Profitability on Firm Value

Abstract

This study aims to determine the effect of capital structure, company growth, and profitability on a firm’s value. The independents variable in this study is capital structure, company growth, and profitability. The dependent variable in this study is the firm’s value.The type of this research is an empirical study and used the secondary data which were obtained by the documentation technique. This study observed coal mining companies listed on Indonesia Stock Exchange from 2015 to 2019. The sample was obtained by the purposive sampling method. The analysis data used in this study was multiple linear regression analysis.The result of this analysis states that capital structure, company growth, and profitability affect a firm’s value simultaneously. The most dominant variable is profitability, while company growth and capital structure are not the dominant variables on firm value.

Keywords: Capital structure, Company growth, Profitability, Firm’s value.

DOI: 10.7176/RJFA/12-6-09

Publication date:March 31^st 2021