Examining Profitability as a Mediating Factor in the Relationship Between Capital Structure, Liquidity, and Sales Growth on Firm Value

Firm value is important for a company thus, many companies compete with other companies to get better Firm value. A company that has a good Firm value is considered having a better performance so that it becomes an attraction that can increase Firm value. Firm value of a company can be recognized from stock price in the stock market which is called Indonesia Stock Exchange. Investors are seen as a determinant of Firm value. The higher Firm value of a company describes that the company’s performance is in a good condition. When the investors catch a good signal from the company, it will encourage them to buy the shares. This research is a quantitative study which aims to find out the influence of Sales Growth to the Firm value of a company that is mediated by Capital Structure and Firm value. This study uses Consumer Goods Companies that are listed in Indonesia Stock Exchange and the financial reports used range from 2015 to 2019. This study used nonrandom sampling which is Purposive Sampling to obtain 26 out of 60 companies to be tested with five sub-sectors, namely: Cosmetics and Household, Food and Beverages, House ware, Pharmaceuticals, and Tobacco Manufacturers. Multiple linear regression analysis technique using SPSS system version 25. Sales Growth Variable (X), Capital Structure (Z1) and Profitability (Z2) have an effect on Firm value (Y) with determinant value R2 = 40.9%, Sales Growth Variable (X) affects Capital Structure (Z1) with determinant value R2 = 39.5% and Sales Growth (X) to Profitability (Z2) with determinant value R2 = 4.5%. In the t test, it can be concluded that Sales Growth has no effect on Firm value. Capital Structure and Profitability have an effect on Firm value. Sales Growth has a significant positive effect on Capital Structure and a significant negative impact on Profitability. The mediating variable, which is Capital Structure, is able to act as mediator between Sales Growth and Firm value while profitability is unable to act as mediator between Sales Growth and Firm Value


 The purpose of this study is to examine the effect of firm size, sales growth, asset structure, and profitability on firm value with capital structure as an intervening variable. The population are all companies listed on the Indonesia Stock Exchange. While the sample in this study were all manufacturing companies listed on the Indonesia Stock Exchange Period 2012 - 2017. Sampling using purposive sampling and data analysis methods using multiple linear regression and path analysis. The results of this study are firm size and asset structure have a positive effect on capital structure. Sales growth and profitability have a negative effect on capital structure. Capital structure, sales growth, and asset structure have a negative effect on firm value. Firm size has a positive effect on company value. Capital structure cannot mediate the influence of firm size and profitability on firm value. Capital structure can mediate the effect of sales growth and asset structure on firm value.

Avoiding Distortion in Corporate Valuation Litigation: An Application of Discounted Cash Flow

This study examines the influence of capital structure, sales growth, and firm size on firm value, with profitability acting as a mediating variable. The empirical analysis is conducted on firms operating in the metals and related sub-sectors listed on the Indonesia Stock Exchange (IDX) over the period 2011–2021, with a sample comprising only firms with complete financial disclosures. Utilizing a causal-comparative research design, the study seeks to identify and generalize the structural relationships among key financial variables. The study considers capital structure, sales growth, and firm size as independent variables, with firm value serving as the dependent variable and profitability (as measured by Return on Assets) functioning as a mediating construct. A quota sampling technique was employed to select 14 firms from the metals and related sub-sectors listed on the Indonesia Stock Exchange (IDX), based on data completeness and sectoral relevance. The analytical framework incorporates descriptive statistics, classical assumption testing, model fit evaluation, multiple linear regression analysis, and hypothesis testing to examine the proposed relationships. The empirical results indicate that capital structure has a positive and statistically significant effect on firm value. Conversely, sales growth exhibits a negative but statistically insignificant relationship with firm value, while firm size demonstrates a significant negative impact. Profitability shows a positive and significant influence on firm value. Further analysis reveals that capital structure negatively affects profitability, although the effect is not statistically significant. Sales growth has a positive and significant impact on profitability, whereas firm size is positively related to profitability, albeit insignificantly. Mediation testing confirms that profitability does not mediate the relationship between capital structure and firm value; however, it significantly mediates the effects of both sales growth and firm size on firm value.

Company value is very important for a company, because the company's value reflects the company's performance which will be associated with stock prices, where the higher the stock price, the higher the value of the company. With a high company value will give a good signal to investors that the company's financial performance is increasing. This study aims to determine the effect of capital structure and sales growth on profitability and firm value. The population in this study is cosmetics and household needs manufacturing companies listed on the IDX. Determination of the sample is done by a purposive sampling method of judgment sampling type and based on predetermined criteria; the number of samples is 5 companies manufacturing cosmetics sub-sectors and household needs. This study uses secondary data obtained from the Indonesia Stock Exchange in 2008-2018. Testing the hypothesis of the study used descriptive statistical test techniques and path analysis test with SPSS (Statistical Product and Service Solutions) application tools. The results showed that: 1) Capital structure has a positive and significant effect on profitability 2) Sales growth has a negative and not significant effect on profitability 3) Capital structure has a positive and significant effect on firm value 4) Sales growth has a positive and significant effect on firm value 5) profitability has a positive and significant effect on firm value 6) Capital structure is able to influence the value of the company through profitability 7) Sales growth is not able to affect the value of the company through profitability.

This study aimed to determine the effect of business risk, sales growth on firm value with capital structure as an intervening variable in manufacturing companies listed on the Indonesia Stock Exchange. To be able to understand this aim, we have reviewed 20 company's profiles and report from 2015 to 2018 with a purposive sampling technique. After collected the needed data, then analyzed data using the technique of panel data regression and path analysis. Finally, we obtained that the capital structure has a significant positive effect on firm value, business risk. While sales growth does not affect firm value and business risk does not affect capital structure. Sales growth has a significant negative effect on capital structure. The capital structure is only able to mediate the effect of sales growth on the value of the company. This study has its validity and reliability and therefore, it can be useful insights to support infrastructure business and other policymakers as well as academic projects working on similar issues.

This study aims to examine the effect of sales growth, profitability, capital structure, and corporate social responsibility (CSR) on firm value in companies listed in the LQ45 index during the 2022–2024 period. This research also intends to provide insights for investors in evaluating the factors that influence firm value as a basis for investment decision-making, including sales growth, profitability, capital structure, CSR, and firm value. The population of this study consists of 45 LQ45 companies, with a sample of 32 companies selected using purposive sampling based on specific criteria, resulting in 96 total observations. The research results show that sales growth and CSR do not affect firm value. Meanwhile, profitability and capital structure hurt firm value. This study concludes that sales growth has not yet become a strong fundamental signal for investors, as it does not always reflect sustainable performance. High profitability, in fact, has a negative effect on firm value, which may be due to a mismatch between short-term profits and the long-term prospects expected by investors. A high capital structure signals greater financial risk, thereby reducing investor confidence in the company. Meanwhile, CSR has not had a significant impact on firm value, possibly due to low disclosure quality or a lack of investor attention to sustainability issues.

This study aims to examine the effect of profitability mediation and capital structure on the effect of company growth on firm value. The study was conducted on manufacturing companies listing on the Indonesia Stock Exchange in 2012-2017 with a total sample of 17 companies. The research data was analyzed using causal step regression analysis and product of coefficient models with the help of the SPSS version 19.00 application. The results of testing the hypothesis obtained by sales growth is not significant to the value of the company. Sales growth has a negative effect on profitability. Profitability has a significant positive effect on firm value. The company's growth has a significant positive effect on capital structure. Capital structure has a significant negative effect on firm value. Profitability does not mediate the influence of company growth on firm value. Capital structure is able to mediate the influence of company growth on firm value.

The research aims to determine the effect of profitability, liquidity, asset structure and sales growth on capital structure and whether firm size can moderate the effects of profitability, liquidity, asset structure and sales growth on capital structure in automotive and components sub-sector companies listed on the Indonesia Stock Exchange. The research population is all automotive and components sub-sector companies listed on Indonesia Stock Exchange, namely 13 companies. The research samples are taken using purposive sampling technique, and 12 companies are selected over 5 periods, from 2018 – 2022. The research employs Moderated Regression Analysis (MRA) method with the aid of EViews 10 software. The research results indicate that liquidity is the only variable which has a positive and significant effect on capital structure. Meanwhile, profitability has no effect on capital structure, asset structure has no effect on capital structure, and sales growth has no effect on capital structure. Company size can moderate the correlation between liquidity and capital structure, but it cannot moderate the correlation between profitability and capital structure. In addition, company size cannot moderate the correlation between asset structure and capital structure, and it cannot moderate the correlation between sales growth and capital structure. Keywords: profitability, liquidity, asset structure, sales growth, capital structure, firm size

The purpose of this research is to show empirically the factors that influence firm value. This research wants to test whether variables such as institutional ownership, sales growth, capital structure, return on assets, debt to asset ratio, current ratio, and dividend payout ratio have an influence on firm value. The sampling method used in this research was a purposive sampling technique with total data obtained from 2020-2022, namely 124 sample companies from the consumer cylicals, consumer non-cylicals and healthcare sectors that met the research criteria. The analysis technique applied is the multiple regression method. This research shows that sales growth and return on assets influence firm value, while institutional ownership, capital structure, debt to asset ratio, current ratio, and dividend payout ratio do not influence firm value.

This study aims to analyze: 1) the effect of profitability on firm value, 2) the effect of capital structure on firm value, 3) the effect of firm size on firm value, 4) the effect of sales growth on firm value, 5) the effect of the current ratio on firm value, 6) the influence of profitability, capital structure, company size, sales growth and current ratio together affect firm value. The results of this study indicate that: profitability has a significant effect on firm value, capital structure has no significant effect on firm value, firm size has a negative effect on firm value, sales growth has no significant effect on firm value, current ratio has a significant effect on firm value in sub-sector companies. food and beverages listed on the Indonesia Stock Exchange (BEI) 2013-2017

This study aims to analyze: 1) the effect of profitability on firm value, 2) the effect of capital structure on firm value, 3) the effect of firm size on firm value, 4) the effect of sales growth on firm value, 5) the effect of the current ratio on firm value, 6) the influence of profitability, capital structure, company size, sales growth and current ratio together affect firm value. The results of this study indicate that: profitability has a significant effect on firm value, capital structure has no significant effect on firm value, firm size has a negative effect on firm value, sales growth has no significant effect on firm value, current ratio has a significant effect on firm value in sub-sector companies. food and beverages listed on the Indonesia Stock Exchange (BEI) 2013-2017

A pharmaceutical company is a healthcare company that focuses on researching, developing, and distributing drugs and/or medical devices. Firm value is the stock market value that reflects the wealth of the owner of a company. The purpose of this research is to examine whether capital structure, sales growth, and dividend policy have an influence on company value in the pharmaceutical sub-sector listed on the Indonesia Stock Exchange for the 2014-2019 period. The research population used is the pharmaceutical sub-sector companies listed on the Indonesia Stock Exchange for the 2014-2019 period, totaling 12 companies. The sampling technique used purposive sampling and obtained 6 companies based on the criteria. The analytical method used in this research is multiple linear regression analysis assisted by the SPSS application system. The results showed that simultaneously capital structure, sales growth, and dividend policy have an influence on firm value. Partially the capital structure has a significant negative effect on company value. Sales growth partially has a positive and insignificant effect on company value. Partially the dividend policy has a significant positive effect on company value.
 
 Keywords: Capital Structure, Sales Growth, Dividend Policy, and Company Value.

ABSTRACTCapital structure is a comparison of own capital with foreign capital owned by each company. Capital alone can be divided into retained earnings and company ownership. Meanwhile, foreign capital is short-term debt or long-term debt. The good and bad conditions of the company can be determined through the capital structure. Through the capital structure, the company can allocate funds owned for appropriate business activities as well as useful for the continuity of the company. In general, factors that affect the company's capital structure include profitability, liquidity, company size, sales growth, and asset structure.This study aims to find out the different influences of capital structures on property companies and building construction. This research uses property and building construction companies listed on the Indonesia Stock Exchange in 2015-2019.The result of this study profitability affects the capital structure of property companies, while in building construction companies profitability has no effect on the capital structure. Liquidity in property companies affects the capital structure. This is the same as the result of building construction companies where liquidity affects the capital structure. In property companies the size of the company has an influence on the capital structure, as well as building construction companies that the variable size of the company affects the capital structure. Sales growth has an influence on the capital structure in property companies, while building construction companies sales growth has no effect on the capital structure. The structure of the property company's assets affects the capital structure. The same indicates that the asset structure of building construction companies affects the capital structure. The difference in the influence of the capital structure of property companies is influenced by profitability, liquidity, company size, sales growth, and asset structure. For the capital structure of building construction is influenced by liquidity, company size, and asset structure. As for variable profitability and sales growth in building construction companies has no effect on the capital structure.
 Keywords: Profitability, Liquidity, Company Size, Sales growth, Asset Structure, Capital Structure

This study examines the effect of capital structure, sales growth, cash turnover, and firm size on profitability mediated by operational efficiency in Indonesia’s healthcare industry listed on the Indonesia Stock Exchange (IDX) during 2020–2024. The healthcare sector is a capital-intensive industry that faces high operational costs and complex regulations, leading to fluctuating profitability despite strong sales growth. This topic is relevant because previous studies provide inconsistent findings regarding the relationship between leverage and profitability in capital-intensive firms. The research adopts a quantitative approach using secondary data from financial statements of healthcare companies listed on IDX. Samples were selected through a purposive sampling technique, and panel data regression with the Fixed Effect Model (FEM) was used for hypothesis testing. Operational efficiency was analyzed as a mediating variable through the Sobel test to examine indirect effects. The findings of this study indicate that capital structure (DER) and firm size have a significant negative effect on operational efficiency. However, capital structure does not significantly affect profitability (ROA), while firm size has a significant negative effect on profitability (ROA). The results also show that sales growth and cash turnover have no significant effect on operational efficiency. Furthermore, operational efficiency is proven to mediate the negative and significant effects of capital structure and firm size on profitability (ROA), but it does not mediate the relationship between sales growth and cash turnover with profitability (ROA).These findings imply that healthcare companies should optimize their capital structure and asset utilization while enhancing operational efficiency to sustain profitability.