The effect of capital structure, and growth on firm value on real estate and property companies listed on BEI (2015-2019 period)
Keywords:
Company Value, Capital Structure, Growth
Abstract
The value of the company is a benchmark for investors to invest. For this reason, the value of the company is an important factor that must be increased by every company, because investors will tend to invest their shares in companies that have a high value. The focus of this research is to explain the influence of capital structure and growth on firm value. The research sample consisted of taken from 36 companies with five years of observation. The total sample consisted of 156 observation samples after undergoing data screening. . The analysis technique in this research is multiple linear and non-linear regression analysis. The results of this study indicate that the capital structure based on market value measurement (MLLEV) on linear and non-linear regression has a negative and significant effect. The capital structure based on the measurement of book value (LTDTA) in the non-linear model has a positive and significant effect, but has no influence on the linear model. Growth has no effect on firm value in all models.
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References
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Suprantiningrum, SE, & SE, SNA (2014). Moderate Effect of Disclosure of Corporate Social Responsibility (CSR) and Good Corporate Governance (GCG) on the Relationship of Return On Equity (ROE) and Firm Value. Acya Fibers, 2(3), 83.
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Www.idx.co.id
Al-Slehat, ZAF, Zaher, C., Fattah, A., & Box, PO (2020). Impact of financial leverage, size and assets structure on firm value: Evidence from industrial sector, Jordan. International Business Research, 13(1), 109–120.
Brigham, EF, & Houston, JF (2010). Fundamentals of Financial Management: Essentials of Financial Management Book 1.
Cheng, M.-C., & Tzeng, Z.-C. (2011). The effect of leverage on firm value and how the firm financial quality influences on this effect. World Journal of Management, 3(2), 30–53.
Cuong, NT, & Canh, NT (2012). The effect of capital structure on firm value for Vietnam's seafood processing enterprises. International Research Journal of Finance and Economics, 89(89), 221–233.
Dang, HN, Vu, VTT, Ngo, XT, & Hoang, HTV (2019). Study the impact of growth, firm size, capital structure, and profitability on enterprise value: Evidence of enterprises in Vietnam. Journal of Corporate Accounting & Finance, 30(1), 144–160.
Dawar, V. (2014). Agency theory, capital structure and firm performance: some Indian evidence. Managerial Finance.
Dewi, PYS, Yuniarta, GA, AK, SE, Atmadja, AT, & SE, A. (2014). The effect of capital structure, company growth and profitability on firm value in LQ 45 companies on the IDX for the period 2008-2012. JIMAT (Accounting Student Scientific Journal) Undiksha, 2(1).
Fahmi, I. (2013). Financial Statement Analysis: Alphabeta. Bandung.
Febriyanto, FC (2018). The effect of leverage, sales growth and liquidity to the firm value of real estate and property sector in Indonesia stock exchange. EAJ (Economic and Accounting Journal), 1(3), 198–205.
Ghozali, I. (2011). Multivariate analysis application with IBM program. Spss.
Hang, M., Geyer‐Klingeberg, J., Rathgeber, AW, & Stöckl, S. (2020). Rather complements than substitutes: Firm value effects of capital structure and financial hedging decisions. International Journal of Finance & Economics.
Hartono, J. (2013). Portfolio Theory and Investment Analysis Eighth Edition. Yogyakarta: Mr.
Hermuningsih, S. (2013). The effect of profitability, growth opportunity, capital structure on firm value in public companies in Indonesia. Bulletin of Monetary Economics and Banking, 16(2), 127–148.
Ibrahim, M. (2017). Capital Structure and Firm Value in Nigerian Listed Manufacturing Companies: an Empirical Investigation Using Tobin's Q Model. International Journal of Innovative Research in Social Sciences & Strategic Management Techniques, 4(2), 112–125.
Indrajaya, G., & Setiadi, R. (2012). The Influence of Asset Structure, Firm Size, Growth Rate, Profitability and Business Risk on Capital Structure: Empirical Study on Mining Sector Companies Listed on the Indonesia Stock Exchange for the Period 2004-2007. Max, 6(2).
Indriantoro, N., & Supomo, B. (2018). Business research methodology for accounting and management (First). Yogyakarta: BPFE.
Kieso, DE, Weygandt, JJ, & Warfield, TD (2014). Intermediate Accounting, IFRS Edition, Hoboken. New Jersey: John Wiley & Sons.
Kusumajaya, DKO (2011). The effect of capital structure and company growth on profitability and firm value in manufacturing companies on the Indonesian stock exchange. Udayana University, Denpasar: Unpublished Thesis.
Le, TPV, & Phan, TBN (2017). Capital structure and firm performance: Empirical evidence from a small transition country. Research in International Business and Finance, 42, 710–726.
Li, K., Niskanen, J., & Niskanen, M. (2019). Capital structure and firm performance in European SMEs: Does credit risk make a difference? Managerial Finance.
Mahardhika, BP, & Aisjah, S. (2013). Testing Pecking Order Theory and Trade Off Theory on the Company's Capital Structure (Study on Consumer Goods Companies on the Indonesia Stock Exchange). FEB Student Scientific Journal, 2(2).
METLIT SUGIYONO.pdf. (nd).
Modigliani, F., & Miller, MH (1963). Corporate income taxes and the cost of capital: a correction. The American Economic Review, 53(3), 433–443.
Myers, SC (1984). Capital structure puzzle. NBER Working Paper, w1393.
Nini, N., Patrisia, D., & Nurofik, A. (2020). The Effect of Capital Structure on Company Financial Performance. Journal of Economia, 16(2), 173–83.
Purwanto, S. (2017). Statistics for Modern Economics and Finance. Jakarta: Salemba Empat.
Putra, IWJ, & Wiagustini, NLP (2014). Effect of Leverage and Profitability on Dividend Policy and Company Value. Udayana University.
Putri, IGAPT, & Rahyuda, H. (2020). Effect of capital structure and sales growth on firm value with profitability as mediation. International Research Journal of Management, IT and Social Sciences, 7(1), 145–155.
Rubinstein, ME (1973). A mean-variance synthesis of corporate financial theory. The Journal of Finance, 28(1), 167–181.
Sartono, A. (2010). Financial Management theory and application 4th edition. Yogyakarta: Bpfe.
Sinaga, APDSJ (2016). The effect of capital structure, firm growth and dividend policy on profitability and firm value of the oil palm plantation companies in Indonesia. European Journal of Business and Management Www. Iist. ISSN org, 1905–2222.
Spence, M. (1978). Job market signaling. In Uncertainty in economics (pp. 281–306). Elsevier.
Sudana, I. (2011). Corporate Financial Management: Theory & Practice.
Suprantiningrum, SE, & SE, SNA (2014). Moderate Effect of Disclosure of Corporate Social Responsibility (CSR) and Good Corporate Governance (GCG) on the Relationship of Return On Equity (ROE) and Firm Value. Acya Fibers, 2(3), 83.
Syardiana, G., Rodoni, A., & Putri, ZE (2015). The effect of investment opportunity set, capital structure, firm growth, and return on assets on firm value. Accountability, 8(1), 39–46.
Welch, I. (2004). Stock returns and capital structure. Journal of Political Economy, 112(1), 106–131.
Www.idx.co.id
