Jurnal Ekonomi dan Bisnis Jagaditha
109-124

The Role of Profitability in Mediating the Influence of Company Size and Leverage on the Value of Manufacturing Companies Listed on the Indonesia Stock Exchange in 2020-2023 

Dewa Ayu Manik Candrapuspa (Master of Management, Universitas Warmadewa, Indonesia)
Ni Made Wahyuni (Master of Management, Universitas Warmadewa, Indonesia)
Ida Ayu Surasmi (Master of Management, Universitas Warmadewa, Indonesia)
Ida Bagus Udayana Putra (Master of Management, Universitas Warmadewa, Indonesia)
I Made Suniastha Amerta (Master of Management, Universitas Warmadewa, Indonesia)
Ni Nengah Seri Ekayani (Master of Management, Universitas Warmadewa, Indonesia)



Article Info

Publish Date
30 Nov -0001

Abstract

Bank Indonesia (BI) saw that the manufacturing sector's success in 2023 slowed the rise in company value, as shown by the changing business value. If the growth comes with a high rate of return on investment for shareholders, it will change how many investors or shareholders are worth. There are several ways to figure out how much a business is worth. Before investing, people look at a number of factors that will help them figure out how much a company is worth. This research examines how profitability influences Indonesia Stock Exchange-listed manufacturing businesses' value between 2020 and 2023. It will examine debt and firm size effects on value. Study participants are manufacturers that went public on the Indonesia Stock Exchange between 2020 and 2023. Over four years, 52 firms provided 208 observational data points. The data was collected from public and private archives, which contain papers, documentation, and historical reports. Researchers employ inferential path analysis to solve the question. The research found that company size significantly reduces profitability. Relatively little leverage affects corporate profitability. Size doesn't affect firm worth as much. Leverage boosts corporate value significantly. Profitability has a positive and significant effect on company value. Profitability is able to mediate the effect of company size on company value. Profitability is not able to mediate the effect of leverage on company value.

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Journal Info

Abbrev

jagaditha

Publisher

Subject

Economics, Econometrics & Finance

Description

JAGADITHA: Jurnal Ekonomi & Bisnis P-ISSN: 2355-4150, E-ISSN: 2579-8162 is a journal of economic and bussiness published by Management Deparment, Postgraduated Program, Warmadewa University, provides a forum for publishing research articles or review articles. This journal has been distributed by ...