Open AccessThe Role of Profitability in Mediating the Effect of Capital Structure and Liquidity on Firm Value in Food and Beverage Sub-Sector in Indonesian Stock Exchange
Author(s) -
Putu Dyah Pradnya Paramitha
Publication year - 2020
Publication title -
jurnal ekonomi dan bisnis jagaditha/jagaditha : jurnal ekonomi and bisnis
Language(s) - English
Resource type - Journals
eISSN - 2579-8162
pISSN - 2355-4150
DOI - 10.22225/jj.7.2.2154.80-91
Subject(s) - market liquidity , profitability index , stock exchange , business , enterprise value , capital structure , monetary economics , economics , finance , debt
This study aims to analyze the significance of the capital structure and liquidity effect on the profitability value, to analyze the significance of the capital structure, liquidity and profitability effect on firm value, and to analyze the role of profitability in mediating the capital structure and liquidity effect on firm value. The population in this study is food and beverage companies in Indonesia Stock Exchange. The sample was conducted by purposive sampling method and then the number of samples is 12 companies. The research data is secondary data obtained from the website of the Indonesia Stock Exchange and the Indonesia Capital Market Directory from 2013 until 2016. Data analysis is by path analysis technique with IBM SPSS Statistic Version 22. The results of this study showed that: (1) the capital structure negative, not significant impact on profitability. (2) the liquidity had negative significant impact on profitability. (3) the capital structure had negative significant impact on firm value. (4) the liquidity had a negative not significant impact on firm value. (5) the profitability had a positive and significant impact on firm value. (6) profitability is able to mediate the effect of capital structure on firm value significantly. (7) profitability is able to mediate the effect of liquidity on firm value significantly.