PROFITABILITY, GROWTH OPPORTUNITY, CAPITAL STRUCTURE AND THE FIRM VALUE

Authors

Sri Hermuningsih, University of Sarjanawiyata Taman siswa Yogyakarta, IndonesiaFollow

Document Type

Article

Abstract

This paper examines the influence of profitability, growth opportunity, and capital structure on firm value. We apply Structural Equation Model (SEM) on 150 listed companies on the Indonesia Stock Exchange during 2006 to 2010. The result shows that profitability, growth opportunity and capital structure positively and significanctly affect the company’s value. Secondly, the capital structure intervene the effect of growth profitability on company’s value, but not for profitability. Keywords: profitability, growth opportunitiy, capital structure, firm value, SEM.JEL Classification: C51, G32, L25

Recommended Citation

Hermuningsih, Sri (2013) "PROFITABILITY, GROWTH OPPORTUNITY, CAPITAL STRUCTURE AND THE FIRM VALUE," Bulletin of Monetary Economics and Banking: Vol. 16: No. 2, Article 4.
DOI: https://doi.org/10.21098/bemp.v16i2.440
Available at: https://bulletin.bmeb-bi.org/bmeb/vol16/iss2/4

First Page

115

Last Page

136

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License

Country

Indonesia

Affiliation

University of Sarjanawiyata Taman siswa Yogyakarta