<![CDATA[The value of the firm is determined by several factors such as funding decisions and financial performance of the company. The capital structure is the key to improving productivity and performance while the company's financial performance is a measure of the success of a firm in generating profitability. This study aims to determine the effect of capital structure on firm value and financial performance as a mediating variable in the property and real estatecompany in the Indonesia Stock Exchange. The study population was the whole property and real estatecompany listed on the Indonesia Stock Exchange in the period 2010 to 2014 as many as 42 companies. Method of sampling with purposive sampling method is based on criteria with a total sample of 23 companies in the property and real estate. The research data is secondary data obtained from the Indonesian Capital Market Directory (ICMD) in 2010 to 2014. The variables used indicator is the Debt to Assets Ratio (DAR), Debt to Equity Ratio (DER), Return on Equity (ROE), and Price Book Value (PBV). The analytical method used is path analysis using SPSS version 20.0 for Windows. The results of this study indicate that (1) the capital structure (DAR) has a positive and significant impact on financial performance (ROE). (2) the capital structure (DER) has a negative and no significant effect on the financial performance (ROE). (3) the capital structure (DAR) has a positive and no significant effect on firm value (PBV). (4) the capital structure (DER) has a positive and no significant effect on firm value (PBV). (5) financial performance (ROE) has a positive and asignificant effect on firm value (PBV) and is able to mediate the relationship between the capital structure with firm value.]]>
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