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Jurnal Administrasi Bisnis Terapan (JABT)

Abstract

There are several factors that become the goal of the establishment of a company. The first goal is to achieve maximum profit, and the second is to prosper the owner of the company or shareholders, and the next goal is to maximize the value of the company reflected in the company's shares. Companies that have gone public, maximize the value of the company seen from a high share price, because the value of the company can be reflected in the company's share price. This study chose the manufacturing industry because there are sub-sectors that will be selected in this study. The Indonesian manufacturing industry still recorded positive performance in several of its sub-sectors despite being under pressure from economic conditions. This research examines the analysis of the effect of leverage and firm size on firm value with profitability as a mediating variable. The population of this research is Food and Baverages Companies listed on the Indonesia Stock Exchange for the period 2018-2019 which consists of 24 companies. The data analysis technique used is SEM-PLS using the WarpPLS 7.0 application. The results of this study state that leverage has no effect on firm value, while firm size and profitability affect firm value. Leverage and company size affect profitability. Leverage and firm size affect firm value through profitability.

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