Capital Influence on Company Value with Profitability as Intervening Variables (Study on Building and Non Building Construction Companies Listed in Indonesia Stock Exchange Period 2012-2017)

Sri Sahbany, Ni Ketut Surasni, Hermanto

Abstract: This study aims to, (1) Analyze the influence of Capital Structure on Profitability; (2) Analyze the effect of Capital Structure on Company Values; (3) Analyze the effect of profitability on Company Values; (4) Analyzing the effect of Capital Structure on Firm Value with Profitability as an intervening variable. The type of research used is explanatory with a quantitative approach. The population in this study is the Building Construction and Non-Building Companies listed on the Indonesia Stock Exchange (IDX). The number of companies in this study were 13 companies. Determination of samples by purposive sampling method. The data analysis technique uses Path Analysis and the analysis tool used is IBM SPSS 25. The results showed that (1) Capital Structure has a positive and significant effect on profitability; (2) Capital Structure has a positive and significant effect on Company Value; (3) Profitability has a positive and significant effect on Company Value; (4) Profitability is able to mediate the influence of Capital Structure on Firm Value.

Keywords: Construction, DER, PBV and ROE