The Influence of Profitability and Price Earning Ratio on Company Value through Capital Structure in the Banking Industry Sector on the Idx
Journal Title: Journal of Economics, Finance and Management Studies - Year 2022, Vol 5, Issue 10
Abstract
The purpose of this study was to examine and analyze the effect of profitability and price earning ratio on company value through capital structure in the banking industry sector on the IDX. This research is explanatory through hypothesis testing to test the causal relationship between the variables of profitability, price earning ratio, company value and capital structure. The data used in this research is secondary data from annual report data and financial report data of banking companies. The sampling method used purposive sampling. Hypothesis testing in this study uses path analysis. The results showed that profitability did not support the increase in the capital structure of the banking industry sector on the Indonesia Stock Exchange, and the price earning ratio did not support the capital structure of the banking industry sector on the Indonesia Stock Exchange. Then, profitability supports an increase in the value of the banking industry sector company on the Indonesia Stock Exchange and the price earning ratio does not support an increase in the value of the banking industry sector company on the Indonesia Stock Exchange, the capital structure does not support an increase in the value of the banking industry sector company on the Indonesia Stock Exchange, and there is no support mediation between profitability and price earning ratio to company value through capital structure, so that capital structure cannot be an intermediary from profitability and price earning ratio to company value.
Authors and Affiliations
Leonardo Sihombing, Ismail Razak, Harry Indratjahyo
Keywords
Related Articles
- EP ID EP726483
- DOI 10.47191/jefms/v5-i10-25
- Views 33
- Downloads 0
The Role of Satisfaction in Mediating the Relationship between Brand Trust and Brand Image towards Consumer Loyalty on E-Commerce Platforms
The rapid development of communication technology today offers increasingly diverse forms of communication, making communication unrestricted by boundaries, distance, space, or time. This is also driven by the continuous...
Influence of Strategic Management Process on Performance of Small and Medium-Sized Enterprises in Eldoret Town
A company that wants to surpass its rivals employs a constant culture of appraisal as part of its strategic management process. Developing the organization's broad vision for its present and future goals is a challenging...
Digital-Based Msme Marketing Model in Facing the Era of the Industrial Revolution 4.0
The crisis due to the COVID-19 pandemic over the past two years has forced all businesses to accelerate the digitization process. At this point, it appears that MSMEs are not fully ready to carry out digital transformati...
Industrialization, Inclusive Economic Growth: Tunisia in the Era of the Current Crisis
The consequences of the current crisis vary considerably from country to country and from sector to sector. In this paper, we examine how industrialization and inclusive economic growth of Tunisia is being affected by th...
Product Quality Analysis Of Customer Purchase Decisions Of Palm Oil Products With The Role Of Distribution Channel (Case Study Of Palm Oil Companies)
The purpose of this research was to examine and analyze the effects of product quality and distribution channels on the purchase decisions of Crude Palm Oil consumers in palm oil companies. The product quality, distribut...