International Journal of Social Science
Vol. 1 No. 5: February 2022

THE ROLE OF PROFITABILITY IN MEDIATING CAPITAL STRUCTURE, AND FIRM SIZE ON FIRM VALUE MEDIATED BY PROFITABILITY

Sajiwo Tri Prakoso (Retail Management, Faculty of Business and Economics University of Aisyiyah Surakarta)
Diana Pramudya Wardhani (Management, Faculty of Economics, University of Muhammadiyah Ponorogo)
Nur Amalina (Retail Management, Faculty of Business and Economics University of Aisyiyah Surakarta)
Civi Erikawati (Retail Management, Faculty of Business and Economics University of Aisyiyah Surakarta)
Chandra Wisnu Utomo (Retail Management, Faculty of Business and Economics University of Aisyiyah Surakarta)



Article Info

Publish Date
01 Feb 2022

Abstract

This study aims to examine the effect of capital structure and firm size on profitability and firm value. The total population and sample are 32 real estate property companies listed on the Indonesia Stock Exchange. The data is taken from secondary data listed on the IDX from the financial statements of www.idx.com. The data analysis technique in this study used multiple regression analysis and was expanded with path analysis. From the results of regression testing, it can be concluded as follows: Capital structure has a negative and significant effect on profitability, while firm size has a positive and significant effect on profitability. Partially, capital structure and profitability have a positive and significant effect on firm value, while firm size has a negative and insignificant effect. Profitability has a positive and significant effect on firm value. Profitability as an intervening variable does not mediate the relationship between capital structure and firm size with firm value shown from t arithmetic which is smaller than t table Sobel test.

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Journal Info

Abbrev

IJSS

Publisher

Subject

Agriculture, Biological Sciences & Forestry Humanities Computer Science & IT Education Environmental Science Health Professions Languange, Linguistic, Communication & Media Medicine & Pharmacology Public Health Social Sciences Other

Description

"IJSS” for International Journal of Sosial Science, published by Bajang Instiute. Published in two formats, printed version of ISSN:2798-3463 and the online version of ISSN:2798-4079, both of which are published six times in one year. The scope of the journal studies broadly includes: Culture (a ...