Profitability, Company Size and Capital Structure: Indicators of Corporate Valuation of Miscellaneous Industry Sectors

The purpose of this study is to test and examine empirically how capital structure, company size, and profitability affect the value of manufacturing companies in various industries that are listed on the Indonesia Stock Exchange. The focus on firm development and management to optimize company value, especially in the post-pandemic era, and the extension of the research period are what make this study novel. Purposive sampling was utilized to choose ten companies for the research sample, and the data used is the financial statements of the companies. Using a quantitative approach, the research technique analyzes data using descriptive statistical tests, traditional assumption tests (autocorrelation, heteroskedasticity, multicollinearity, and normality), and hypothesis testing using T-tests and F-tests with the aid of eviews 12 software. According to the study's findings, capital structure significantly lowers business value, profitability significantly increases it, and firm size has no discernible impact. All three factors, however, significantly increase business value at the same time. The research's impacts include giving management advice on how to optimize business value and boost investor trust in capital investments.

Authors

Institutions

Publication Details

Journal
Jurnal Manajemen dan Perbankan (JUMPA)
Published
2025-09-22
DOI
https://doi.org/10.55963/jumpa.v12i2.860
Primary Topic
Financial Reporting and Valuation Research
Type
article
Field-Weighted Citation Impact
0.00
Controls
|||
ALL TIME
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
article

Profitability, Company Size and Capital Structure: Indicators of Corporate Valuation of Miscellaneous Industry Sectors

Yohn Piter Barus, Ida Musdafia, Figih Kinanti
Jurnal Manajemen dan Perbankan (JUMPA)
Financial Reporting and Valuation Research
article

Profitability, Company Size and Capital Structure: Indicators of Corporate Valuation of Miscellaneous Industry Sectors

Yohn Piter Barus, Ida Musdafia, Figih Kinanti
article en

Abstract

The purpose of this study is to test and examine empirically how capital structure, company size, and profitability affect the value of manufacturing companies in various industries that are listed on the Indonesia Stock Exchange. The focus on firm development and management to optimize company value, especially in the post-pandemic era, and the extension of the research period are what make this study novel. Purposive sampling was utilized to choose ten companies for the research sample, and the data used is the financial statements of the companies. Using a quantitative approach, the research technique analyzes data using descriptive statistical tests, traditional assumption tests (autocorrelation, heteroskedasticity, multicollinearity, and normality), and hypothesis testing using T-tests and F-tests with the aid of eviews 12 software. According to the study's findings, capital structure significantly lowers business value, profitability significantly increases it, and firm size has no discernible impact. All three factors, however, significantly increase business value at the same time. The research's impacts include giving management advice on how to optimize business value and boost investor trust in capital investments.

Jurnal Manajemen dan Perbankan (JUMPA)Vol. 12(2)
Yarsi University (ID)
Openalex Percentile: Top 60%
Financial Reporting and Valuation Research
AI Navigator

Ask Laika to Summarize, Analyze, and Connect papers live on the map.

Summarize Papers & Methodologies

Extract key findings, datasets, and comparative methods across publications.

Benchmark Rankings & Visual Analytics

Rank top research institutions, authors, funders, topics, and journals by Field-Weighted Citation Impact (FWCI) and paper volume with instant charts.

Connect Distant Disciplines

Bridge topological clusters on the map to find hidden collaborative intersections.