Profitability: Capital structure and firm growth on firm value

Abstract

The purpose of this study was to test and analyze how the effect of capital structure and company growth on firm value with profitability as an intervening variable. The population of this study is property and real estate companies listed on the stock exchange for the period 2018-2022. While the sample of this study is property and real estate companies that have complete financial reports and there are 4 companies. The sampling technique of this study used purposive sampling, while the analysis method used path analysis with the SPSS version 22 application tool. The results showed that capital structure has a positive effect on firm value, while company growth has a negative effect on firm value. And capital structure and company growth negatively affect profitability. Then profitability is able to mediate capital structure and company growth on firm value.