Abstract
In determining investment decisions, investors need to consider firm value which will describe the welfare that the company is able to provide. The purpose of this research is to prove whether or not there is a mediating effect of company performance on the effect of capital structure on fluctuations in firm value. The analytical technique used is linear regression analysis and Sobel test with the research sample being 18 food and beverage sub-sector companies listed on the Indonesia Stock Exchange (IDX) in 2016-2020. This research gives the result that the capital structure has a negative effect on changes in firm value and company performance. Changes in firm value are not partially affected by company performance. Simultaneously, capital structure and company performance significantly affect firm value. The results obtained prove that the effect of capital structure on firm value cannot be mediated by company performance.
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