Year: 2015
Type: article
Abstract: The use of debt by the company should be used to enhance the company's operations, expansion, and increase sales, so that the company's profitability can be increased.Firm's Value is investor perception of the company, which is often associated with stock prices.High stock prices could enhance shareholder value.The Firm's value can be estimated with Tobin's Q, which is the replacement cost required to obtain the same assets with the assets of the company.The purpose of this study was conducted to examine the relationship between capital structure (DER), the company's performance (ROE) and Firm value (Tobin's Q) of companies listed on the Indonesian Stock Exchange.The research data consisted of 130 manufacturing companies from 2011 to 2014.The analysis tool used is regression analysis.Results showed that the financial performance be a better mediator to firm value than the capital structure.There is a negative influence between capital structure and profitability, the positive effects of capital structure and profitability of the Firm's value.
Author: Maria Kontesa
Language: English
Subfield: Finance
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W1870739658