Sohabat Nasuha
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The Effect of Capital Structure, Firm Size, and Institutional Ownership on Firm Value with Profitability as a Mediating Variable In Pharmaceutical Companies Listed on the Indonesia Stock Exchange in 2020-2023 Sohabat Nasuha; Yuliusman, Yuliusman; Ratih Kusumastuti
International Journal of Economic Research and Financial Accounting Vol 3 No 1 (2024): IJERFA OCTOBER 2024
Publisher : CV. AFDIFAL MAJU BERKAH

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.55227/ijerfa.v3i1.222

Abstract

This research aimed to examine the impact of capital structure, firm size, and institutional ownership on firm value, with profitability acting as a mediating variable. The study utilized secondary data from the annual reports and financial statements of pharmaceutical sub-sector companies listed on the Indonesia Stock Exchange for the period 2020-2023. Using Smart-PLS software, the results revealed that capital structure negatively affects profitability, while firm size and institutional ownership do not influence profitability. Additionally, capital structure, firm size, and institutional ownership were found to have no effect on firm value. However, profitability positively impacts firm value, yet when mediated by profitability, capital structure, firm size, and institutional ownership do not affect firm value.