Maximizing Company Value: Unveiling the Impact of Capital Structure and Size, with Profitability as the Key Player

Ahmad Sholihin, Sri Hermuningsih, Ratih Kusumawardhani, Suddin Lada

Abstract


The purpose of this study is to examine the Effect of Capital Structure and Company Size on Company Value with Profitability as an Intervening Variable. The population of this study consists of companies in the food and beverage industry sector listed on the Indonesia Stock Exchange from 2018 to 2022. The data collection method used is purposive sampling. The information used was lower to be collected using the literature research method. The study was conducted on 51 companies.  The data analysis technique uses the multiple linear regression method with the application of SPSS and the Sobel test. Capital structure has a positive influence on profitability, whereas company size does not affect profitability. Capital structure affects the value of the company, while the size and profitability of the company do not affect the value of the company. Furthermore, profitability cannot mediate the relationship between capital structure and firm value, and profitability cannot mediate the relationship between firm size and firm value.  Overall, these findings may encourage further revision and development in financial management theory, especially in terms of how firms should prioritize and manage factors such as capital structure and size to achieve their goals. More research may need to be done to explore the specific conditions that influence these associations.

Keywords


Firm Value; Profitability; Capital Structure; Company Size

Full Text:

PDF

References


Affandi, Y., Ridhwan, M. M., Trinugroho, I., & Hermawan Adiwibowo, D. (2024). Digital adoption, business performance, and financial literacy in ultra-micro, micro, and small enterprises in Indonesia. Research in International Business and Finance, 70, 102376. https://doi.org/https://doi.org/10.1016/j.ribaf.2024.102376

Agiomirgianakis, G., Asteriou, D., & Voulgaris, F. (2002). Capital structure, asset utilization, profitability and growth in the Greek manufacturing sector. Applied Economics, 34, 1379–1388. https://doi.org/10.1080/00036840110096822

Ahmad, I. (2024). The Role of Strategic Financial Management in Enhancing Corporate Value and Competitiveness in the Digital Economy. Economia Chilena, 27, 1–8. https://doi.org/10.36923/economa.v27i1.116

Amro, P. Z. N., & Asyik, N. F. (2021). Pengaruh Profitabilitas, Ukuran Perusahaan, Dan Struktur Modal Terhadap Nilai Perusahaan.

Ardiana, E., & Chabachib, M. (2018). Analisis Pengaruh Struktur Modal, Ukuran Perusahaan Dan Likuiditas Terhadap Nilai Perusahaan Dengan Profitabilitas Sebagai Variabel Intervening (Studi pada Perusahaan Consumer Goods yang terdaftar di BEI pada Tahun 2012-2016). Diponegoro Journal of Management, 7(2), 1–14.

Ayange, A., Emmanuel, N. C., Rosemary, I. H., Ndudi, U. C., & Samuel, U. E. (2021). Effect of capital structure on firms performance in Nigeria. Universal Journal of Accounting and Finance, 9(1), 15–23. https://doi.org/10.13189/ujaf.2021.090102

Aydın Unal, E., Unal, Y., & Isık, O. (2017). the Effect of Firm Size on Profitability: Evidence From Turkish Manufacturing Sector. Pressacademia, 6(4), 301–308. https://doi.org/10.17261/pressacademia.2017.762

Aydoğmuş, M., Gülay, G., & Ergun, K. (2022). Impact of ESG performance on firm value and profitability. Borsa Istanbul Review, 22, S119–S127. https://doi.org/https://doi.org/10.1016/j.bir.2022.11.006

Ayem, S., & Tia, I. (2019). Pengaruh Perencanaa Pajak, Kebijakan Dividen dan Kepemilikan Institusional terhadap Nilai Perusahaan (Studi Kasus Perusahaan LQ45 yang tercatat dalam Bursa Efek Indonesia) Periode 2012-2016. Jurnal Akuntansi Pajak Dewantara, Vol 1 No 2.

Binawati, V. Z. (2022). Analisis Audit Report Lag Diukur Dari Segi Ukuran Perusahaan , Auditor Switching , Dan Debt To Asset Ratio ( DAR ).

Brusov, P., & Filatova, T. (2023). Capital Structure Theory: Past, Present, Future. Mathematics, 11, 616. https://doi.org/10.3390/math11030616

Chrysafis, K. A., Papadopoulou, G. C., & Theotokas, I. N. (2024). Measuring financial performance through operating business efficiency in the global cruise industry: A fuzzy benchmarking study on the “big three.” Tourism Management, 100, 104830. https://doi.org/https://doi.org/10.1016/j.tourman.2023.104830

Danang, S. (2013). Metodologi Penelitian Akuntansi. PT Refika Adimata.

Fauziyah, L., & Indah Yuliana. (2022). Pengaruh Struktur Modal Terhadap Nilai Perusahaan Dengan Profitabilitas Sebagai Variabel Intervening. Jurnal Manajemen, Ekonomi, Keuangan Dan Akuntansi (MEKA), Vol 1 No 1, 320–326.

Ghaemi-Zadeh, N., & Eghbali-Zarch, M. (2024). Evaluation of business strategies based on the financial performance of the corporation and investors’ behavior using D-CRITIC and fuzzy MULTI-MOORA techniques: A real case study. Expert Systems with Applications, 247, 123183. https://doi.org/https://doi.org/10.1016/j.eswa.2024.123183

Graña-Alvarez, R., Gomez-Conde, J., Lopez-Valeiras, E., & González-Loureiro, M. (2024). Management control systems, business financial literacy and financial leverage in business-incubated start-ups. The British Accounting Review, 101427. https://doi.org/https://doi.org/10.1016/j.bar.2024.101427

Grozdić, V., Marić, B., Radišić, M., Duháček Šebestová, J., & Lis, M. (2020). Capital Investments and Manufacturing Firms’ Performance: Panel-Data Analysis. Sustainability, 12, 1689. https://doi.org/10.3390/su12041689

Gunarwati, A. M., Maryam, S., & Sudarwati. (2020). Edunomika – Vol. 04, No. 02 (Agustus 2020). IImu Ilmiah Edunomika, 04(02), 701–709.

Hamidy, R. R., Wiksuana, I. G. B., & Artini, L. G. S. (2015a). Pengaruh Struktur Modal Terhadap Nilai Perusahaan Dengan Profitabilitas Sebagai Variabel Intervening Pada Perusahaan Properti Dan Real Estate di Bursa Efek Indonesia.

Hamidy, R. R., Wiksuana, Ig. B., & Artini, L. G. S. (2015b). Pengaruh Struktur Modal Terhadap Nilai Perusahaan Dengan Profitabilitas Sebagai Variabel Intervening Pada Perusahaan Properti Dan Real Estate di Bursa Efek Indonesia. E-Jurnal Ekonomi DanBisnis Universitas Udayana, 4, 10, 665–682.

Hermuningsih, S. (2012). Pengaruh Profitabilitas, Size Terhadap Nilai Perusahaan Dengan Sruktur Modal Sebagai Variabel Intervening. Jurnal Siasat Bisnis, 16(2), 232–242. https://doi.org/10.20885/jsb.vol16.iss2.art8

Hermuningsih, S., Kusumawardhani, R., & Astuti, C. (2023). Pengaruh Ukuran Perusahaan, Profitabilitas terhadap Nilai Perusahaan dengan Struktur Modal Sebagai Variabel Intervening pada Perusahaan Sub Sektor Makanan dan Minuman yang Terdaftar di Bursa Efek Indonesia (BEI). Jurnal Manajemen Dan Sains, 8(1), 1096–1108.

Ibrahim, A. (2008). Teori dan Konsep Pelayanan Publik Serta Implementasinya. Mandar Maju.

Indriastuti, M., Suhendi, C., & Hanafi, R. (2020). The Role of Corporate Governance Mechanism in Enhancing Firm Value. https://doi.org/10.2991/aebmr.k.200410.025

Kanzari, A., Rasmussen, J., Nehler, H., & Ingelsson, F. (2022). How financial performance is addressed in light of the transition to circular business models - A systematic literature review. Journal of Cleaner Production, 376, 134134. https://doi.org/https://doi.org/10.1016/j.jclepro.2022.134134

Kinesti, N., Dewi, R. R., & Wijayanti, A. (2020). Pengaruh Ukuran Perusahaan Terhadap Profitabilitas Dengan Likuiditas, Pertumbuhan Penjualan, Umur Perusahaan Sebagai Variabel Kontrol.

Kong, X., Ning, P., & Tang, X. (2023). Counterbalance effect of multiple major shareholders in Chinese listed companies: A strategic decision-making perspective. Research in International Business and Finance, 66, 102004. https://doi.org/https://doi.org/10.1016/j.ribaf.2023.102004

Languju, O., Mangantar, M., & H.D.Tasik, H. (2016). Pengaruh Return On Equity, Ukuran Perusahaan, Price Earning Ratio Dan Struktur Modal Terhadap Nilai Perusahaan Property dan Real Estate Terdaftar di Bursa Efek Indonesia.

Legesse, T. S., Tang, J., Wu, Z., & Guo, H. (2021). Debt financing, corporate investment and the productivity of capital invested: Evidence from biggest manufacturing countries. Cogent Economics & Finance, 9(1), 1936369. https://doi.org/10.1080/23322039.2021.1936369

Limbong, D. T. S. (2016). Analisis Pengaruh Struktur Modal Terhadap Profitabilitas. Acounting, 2(3), 1–11.

Meidiawati, K., & Mildawati, T. (2016). Pengaruh Size, Growth, Profitabilitas, Struktur Modal, Kebijakan Dividen Terhadap Nilai Perusahaan.

Menter, M., Göcke, L., Zeeb, C., & Clauss, T. (2023). Disentangling the complex longitudinal relationships between business model innovation and firm performance. Journal of Business Research, 168, 114229. https://doi.org/https://doi.org/10.1016/j.jbusres.2023.114229

Modigliani, F., & Miller, M. H. (1958). The Cost of Capital, Corporation Finance and The Theory of Investment. The American Economic Review, 519–530.

Morri, G., & Beretta, C. (2008). The capital structure determinants of REITs. Is it a peculiar industry? Journal of European Real Estate Research, 1(1), 6–57. https://doi.org/10.1108/17539260810891488

Mulyani, N., & Agustinus, E. (2022). Analisa Pengaruh Ukuran Perusahaan, Struktur Aset, dan Struktur Modal terhadap Profitabilitas. Jurnal Arastirma.

Musah, M., & Kong, Y. (2019). The Relationship between Size and Firms’ Financial Performance: An Empirical Evidence from the Ghana Stock Exchange (GSE). 64–72.

Novitasari, R., & Krisnando. (2021). Pengaruh Struktur Modal, Pertumbuhan Perusahaan, dan Firm Size terhadap Nilai Perusahaan Pada Perusahaan Consumer Goods yang Terdaftar di Bursa Efek Indonesia (BEI) Periode 2017-2020. Jurnal Akuntansi Dan Manajemen (JAM), Vol. 18 No.

Orden-Cruz, C., Paule-Vianez, J., Sánchez-Escobedo, M. C., & Moutinho, V. (2024). EPU and SMEs’ financial performance: Industry vs. service sector. Journal of Open Innovation: Technology, Market, and Complexity, 10(3), 100320. https://doi.org/https://doi.org/10.1016/j.joitmc.2024.100320

Oyon, M. S. S., & Ahmed, M. (2023). Examining the Moderating Effect of Company Size on the Relationship Between Financial Performance, Capital Structure, and Firm Value. International Journal of Business Society, 7, 847–852. https://doi.org/10.30566/ijo-bs/2023.12.117

Pradana, E., & Imelda, E. (2023). The Effect Of Short-Term Debt, Long-Term Debt, Tangibility, Sales Growth, Firm Size, And Debt To Asset Ratio On The Performance Of Manufacturing Companies. International Journal of Application on Economics and Business, 1, 1512–1525. https://doi.org/10.24912/ijaeb.v1i3.1512-1525

Prastuti, R. K. N., & Sudiartha, I. G. M. (2016). Pengaruh Struktur Modal, Kebijakan Deviden, dan Ukuran Perusahaan terhadap Nilai Perusahaan. E-Jurnal Manajemen Unud, Vol. 5, N0.2.

Pratama, I. G. B. A., & Wiksuana, I. G. B. (2016). Pengaruh Ukuran Perusahaan Dan Leverage Terhadap Nilai Perusahaan Dengan Profitabilitas Sebagai Variabel Mediasi. E-Jurnal Manajemen Unud, Vol 5 No 2, 1338–1367.

Putri, N. S., Safitri, E., & Wijaya. (2014). Pengaruh Leverage, Ukuran Perusahaan, Perputaran Modal Kerja dan Likuiditas Terhadap Profitabilitas. Sekolah Tinggi Ilmu Ekonomi MDIP.

Rahayu, M., & Sari, B. (2018). Faktor-Faktor Yang Mempengaruhi Nilai Perusahaan. IkraithHumaniora, Vol 2 No 2.

Rahmawati, A. D., & Topowijono, S. S. (2015). Pengaruh Ukuran Perusahaan, Profitabilitas, Struktur Modal, Dan Keputusan Investasi Terhadap Nilai Perusahaan.

Rikalmi, R. T., & Wibowo, S. S. A. (2015). Pengaruh Ukuran Perusahaan Dan Modal Kerja Terhadap Profitabilitas Perusahaan. P2M Polibatam.

Rosyadah, F., Suhadak, & Darminto. (2012). Pengaruh Profitabilitas Terhadap Struktur Modal Pada Perusahaan Telekomunikasi yang Terdaftar di BEI.

Rudangga, I. G. N. G., & Sudiarta, G. M. (2016a). Pengaruh Ukuran Perusahaan, Leverage, Dan Prifitabilitas Terhadap Nilai Perusahaan.

Rudangga, I. G. N. G., & Sudiarta, G. M. (2016b). Pengaruh Ukuran Perusahaan, Leverage, dan Profitabilitas terhadap Nilai Perusahaan. Jurnal Manajemen Universitas Udayana.

Safrizal, Putra, D. I., Sofyan, S., & B. (2020). Pedoman Umum Menghadapi Pandemi COVID-19 Bagi Pemerintah Daerah. ..Jakarta: Kementrian Dalam Negeri.

Sari, I. P., & Ayu, S. (2019). Pengaruh Ukuran Perusahaan Dan Profitabilitas Terhadap Nilai Perusahaan Pada Perusahaan Manufaktur Yang Terdaftar di Bursa Efek Indonesia 2010 – 2014. Menara Ekonomi, No 3.

Sawir, A. (2004). Analisis Kinerja Keuangan dan Perencanaan Keuangan Perusahaan. PT Gramedia Pustaka Utama.

Silaen, R., & Prasetiono. (2017). Analisis Faktor-Faktor yang Mempengaruhi Tingkat Cash Holding Pada Bank Umum yang Terdaftar di Bursa Efek Indonesia Tahun 2011-2015. Diponegoro Journal Of Management, 6 (3).

Suranto, V., & Walandouw. (2017). Analisis Pengaruh Struktur Modal Dan Kinerja Keuangan Terhadap Nilai Perusahaan Pada Perusahaan Perbankan Di Bursa Efek Indonesia. Jurnal EMBA: Jurnal Riset Ekonomi, Manajemen, Bisnis Dan Akuntansi, 5(2), 1031–1040.

Suryani, E., & Purbohastuti, A. W. (2020). Ukuran Perusahaan atas Nilai Perusahaan melalui Profitabilitas. JURNAL RISET AKUNTANSI TERPADU, Vol 13 No, 256–271.

Suyono, E., Yarram, S., & Riswan, R. (2017). Capital structure, corporate performance, and life cycle: Evidence from Indonesia. Corporate Ownership & Control, 14, 449–461. https://doi.org/10.22495/cocv14i4c2art10

Tomak, S. (2023). Corporate Reputation And Financial Performance Of Firms In Turkey Serpil TOMAK* 1. Ömer Halisdemir Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi, 7, 289–303.

Tripathi, V., Goodell, J. W., Madhavan, V., & Kumar, S. (2024). Moderating effect of capital structure on the relationship between corporate governance mechanisms and firm value: Evidence from India. International Review of Economics & Finance, 92, 1336–1350. https://doi.org/https://doi.org/10.1016/j.iref.2024.02.082

Uddin, M. N., Rashid, M. H. U., & Rahman, M. T. (2022). Profitability, marketability, and CSR disclosure efficiency of the banking industry in Bangladesh. Heliyon, 8(11), e11904. https://doi.org/https://doi.org/10.1016/j.heliyon.2022.e11904

Verawati, H., & Juniarti. (2014). Pengaruh Family Control, Size, Sales Growth dan Leverage terhadap Profitabilitas. Business Accounting Review, 2 (1).

Wang, Q., Dou, J., & Jia, S. (2015). A Meta-Analytic Review of Corporate Social Responsibility and Corporate Financial Performance: The Moderating Effect of Contextual Factors. Business & Society. https://doi.org/10.1177/0007650315584317

Yudistira, A. (2023). Research Trends in Creative Thinking Skills in Mathematics Education. 2, 17–28.




DOI: http://dx.doi.org/10.32497/ab.v25i3.6004

Refbacks

  • There are currently no refbacks.


View My Stats
slot gacor slot gacor hari ini slot gacor 2025 demo slot pg slot gacor slot gacor