The Effect of Profitability, Company Size, Company Growth on Firm Value Through Capital Structure in Food and Beverage Companies on the Indonesia Stock Exchange 2014-2018 Period

Abstract

This research was conducted to examine the effect of profitability, company size and company growth on firm value through the capital structure of food and beverage companies listed on the IDX for the 2014-2018 period. The analysis was carried out using secondary data, namely financial reports on the Indonesian Stock Exchange. The technique used in sampling is purposive sampling. The number of samples obtained were 11 food and beverage companies. The analysis technique uses path analysis. The results of the analysis show that profitability has a positive (significant) effect on capital structure, firm size and firm growth has no effect on capital structure, profitability has a positive (significant) effect on firm value. Firm size and company growth have no effect on firm value, capital structure has a negative (significant) effect on firm value. This research shows that investors and traders only pay attention to the profitability of the company to assess the company, have not considered the size of the company and the growth of the company and the capital structure.