IDEAS home Printed from https://ideas.repec.org/a/idn/journl/v16y2013i2fp1-22.html
   My bibliography  Save this article

Profitability, Growth Opportunity, Capital Structure and The Firm Value

Author

Listed:
  • Sri Hermuningsih

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.

Suggested Citation

  • Sri Hermuningsih, 2013. "Profitability, Growth Opportunity, Capital Structure and The Firm Value," Bulletin of Monetary Economics and Banking, Bank Indonesia, vol. 16(2), pages 1-22, October.
    • Handle: RePEc:idn:journl:v:16:y:2013:i:2f:p:1-22
    DOI: https://doi.org/10.21098/bemp.v16i2.440
    as

    Download full text from publisher

    File URL: https://www.bmeb-bi.org/index.php/BEMP/article/view/440/415
    Download Restriction: no
    File URL: https://libkey.io/https://doi.org/10.21098/bemp.v16i2.440?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Rudi Zulfikar & Nana Nofianti & Kurniasih Dwi Astuti & Meutia Meutia & Aldi Ramadan, 2020. "The Role of Ownership’s Concentration Moderating Dividend Policy Effects on Firm Value," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(2), pages 126-135.
    2. Sakshi Khanna & Amit Srivastava & Yajulu Medury, 2016. "A study of capital structure dynamics on the value of Indian firms using panel threshold regression model," International Journal of Management Practice, Inderscience Enterprises Ltd, vol. 9(1), pages 40-55.
    3. Tri Alpiani & Sutrisno, 2020. "The Effect of Board Structure on Firm Value with Profitability as an Intervening Variable," International Journal of Research and Scientific Innovation, International Journal of Research and Scientific Innovation (IJRSI), vol. 7(12), pages 68-77, December.
    4. Farouq Altahtamouni & Reem Matahen & Amna Qazaq, 2020. "The Mediating Role of the Capital Structure, Growth Rate, and Dividend Policy in the Relationship Between Return on Equity and Market to Book Value," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 11(4), pages 155-164, July.
    5. Ghafar, Safeen & Abdullah, Hariem & Haji Rasul, Van, 2021. "Bank profitability measurements and its determinants: an empirical study of commercial banks in Iraq," MPRA Paper 114697, University Library of Munich, Germany.
    6. Ngatemin & Maksum Azhar & Erlina & Sirojuzilam, 2018. "Value of the Firm in Capital Structure Perspective: (Case study of tourism companies in IndonesiaStock Exchange)," Economics, Sciendo, vol. 6(1), pages 91-102, June.
    7. Nancy Matos Reyes & Robert McDonald & Jaime Rivera Camino, 2022. "La influencia del conflicto social y la licencia social para operar sobre el valor de la empresa," Estudios Gerenciales, Universidad Icesi, vol. 38(165), pages 406-423, November.
    8. Chaleeda & Md. Aminul Islam & Tunku Salha Tunku Ahmad & Anas Najeeb Mosa Ghazalat, 2019. "The Effects of Corporate Financing Decisions on Firm Value in Bursa Malaysia," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 11(3), pages 127-135, March.
    9. Lik Man Daphne Yiu & Ka Yui Karl Wu, 2021. "The Interactions of Absorptive Capacity, Buffer Inventory, and Toxic Emissions on Firm Value," IJERPH, MDPI, vol. 18(4), pages 1-18, February.
    10. Mursalim Mursalim & Nur Alamzah & Abdullah Sanusi, 2015. "Financial Decision, Innovation, Profitability and Company Value: Study on Manufacturing Company Listed in Indonesian Stock Exchange," Information Management and Business Review, AMH International, vol. 7(2), pages 72-78.

    More about this item

    Keywords

    Profitability; Growth Opportunitiy; Capital Structure; Firm Value; SEM;
    All these keywords.

    JEL classification:

    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:idn:journl:v:16:y:2013:i:2f:p:1-22. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Lutzardo Tobing or Jimmy Kathon (email available below). General contact details of provider: https://edirc.repec.org/data/bigovid.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.