Intervention Variable in Indonesian Industry: Case Study on Capital Structure

DOI

10.2991/aisr.k.220201.012How to use a DOI?

Keywords

Firm value; structure of capital; liquidity; profitability; firm size; structure of asset

Abstract

This paper examines the impact of liquidity, profitability, firm size, asset structure and capital structure on business value. From 2015 to 2018, the study’s population included numerous industries listed on the Indonesia Stock Exchange. Purposive sampling was used to gather the research sample—multiple linear regression and path analysis with Partial Least Squares (PLS). Capital structure was negatively influenced by liquidity, profitability, size, and asset structure. Profitability boosts business value. Moreover, liquidity, company size, asset structure, and capital structure have no impact on firm value. The effect of liquidity, profitability, company size and asset structure on firm value is not mediated by capital structure. The obtained results show that increasing business value as measured by Price to Book Value (PBV) involves more than just financial variables and a competitive and sustainable strategy.

Copyright

© 2022 The Authors. Published by Atlantis Press International B.V.

Open Access

This is an open access article under the CC BY-NC license.

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TY  - CONF
AU  - Andi Kartika
AU  - Cahyani Nuswandari
AU  - Sri Sudarsi
AU  - Ika Rosyada Fitriati
PY  - 2022
DA  - 2022/02/02
TI  - Intervention Variable in Indonesian Industry: Case Study on Capital Structure
BT  - Proceedings of the 2nd International Conference on Industry 4.0 and Artificial Intelligence (ICIAI 2021)
PB  - Atlantis Press
SP  - 62
EP  - 67
SN  - 1951-6851
UR  - https://doi.org/10.2991/aisr.k.220201.012
DO  - 10.2991/aisr.k.220201.012
ID  - Kartika2022
ER  -