THE PROFITABILITY, FIRM’S SIZE, DIVIDEND PAYOUT RATIO AND FIRM’S VALUE: CAPITAL STRUCTURE INTERVENTION
Dublin Core
Title
THE PROFITABILITY, FIRM’S SIZE, DIVIDEND PAYOUT RATIO AND FIRM’S VALUE: CAPITAL STRUCTURE INTERVENTION
Subject
profitability, firm’s size, dividend payout ratio, firm’s value, capital structure.
Description
This research aims to investigate the influence of profitability, firm’s size, and dividend payout ratio
towards firm’s value with the capital structure as the intervening variable. The samples employed
were the manufacturing companies registered in Indonesia Stock Exchange from 2016-2018. The
statistic method used to investigate the hypothesis was a path analysis. The result of the hypothesis
investigation proved that the profitability brought significant negative influence towards capital
structure, the firm’s size and dividend payout ratio brought insignificant influence towards capital
structure; the profitability, firm’s size, dividend payout ratio, and capital structure brought significant positive influence towards the firm’s value. On the other hand, the intervening testing results proved that the capital structure intervened in the influence of the profitability towards the firm’s value, and the capital structure did not intervened in the influence of the firm’s size and dividend payout ratio towards the firm’s value. Being able to pick stocks with profitability value and high dividend payout ratio and choosing a large-scale company are the research implications for investors to scale up the firm’s value. Furthermore, companies can increase profitability, pay higher dividend, and choose a large-scale company by balancing the capital structure, so that firm’s value increases.
towards firm’s value with the capital structure as the intervening variable. The samples employed
were the manufacturing companies registered in Indonesia Stock Exchange from 2016-2018. The
statistic method used to investigate the hypothesis was a path analysis. The result of the hypothesis
investigation proved that the profitability brought significant negative influence towards capital
structure, the firm’s size and dividend payout ratio brought insignificant influence towards capital
structure; the profitability, firm’s size, dividend payout ratio, and capital structure brought significant positive influence towards the firm’s value. On the other hand, the intervening testing results proved that the capital structure intervened in the influence of the profitability towards the firm’s value, and the capital structure did not intervened in the influence of the firm’s size and dividend payout ratio towards the firm’s value. Being able to pick stocks with profitability value and high dividend payout ratio and choosing a large-scale company are the research implications for investors to scale up the firm’s value. Furthermore, companies can increase profitability, pay higher dividend, and choose a large-scale company by balancing the capital structure, so that firm’s value increases.
Creator
Christina Heti Tri Rahmawati
Source
DOI : http://dx.doi.org/10.26418/jebik.v9vi3.39765
Publisher
Univ. Tanjungpura
Date
28-12-2020
Contributor
Sri Wahyuni
Rights
P-ISSN : 2087-9954, E-ISSN : 2550-0066
Format
PDF
Language
English
Type
Text
Coverage
Jurnal Ekonomi Bisnis dan Kewirausahaan (JEBIK) Univ. Tanjungpura 2020
Files
Collection
Citation
Christina Heti Tri Rahmawati , “THE PROFITABILITY, FIRM’S SIZE, DIVIDEND PAYOUT RATIO AND FIRM’S VALUE: CAPITAL STRUCTURE INTERVENTION,” Repository Horizon University Indonesia, accessed October 31, 2025, https://repository.horizon.ac.id/items/show/5921.