Improving Corporate Value through Capital Structure, Company Size and Profitability

Abstract

This study aims to investigate the impact of capital structure, business size, and profitability on firm value. The research population consists of manufacturing firms listed on the IDX between 2017 and 2021, with a total of 270 data points. The sampling method employed was purposeful sampling. Quantitative research data and secondary data sources are categorized. Techniques for descriptive statistical data analysis include the traditional assumption test, multiple regression analysis, the coefficient of determination, and hypothesis testing. The results demonstrated that capital structure and profitability have a positive and statistically significant effect on business value; however, firm size has no effect. This research is limited to manufacturing businesses. Thus the results can only represent some companies listed on the IDX. It is anticipated that future researchers will add and expand the research object and lengthen the research time so that the empirical results are more robust or accurate.