• M. Noor Salim Mercubuana University, Jakarta, Indonesia
  • Rina Susilowati PT. Sato Label Indonesia, Bekasi, Indonesia
Keywords: Return on Assets, Current Ratio, Asset Growth, Firm Size, Capital Structure, Firm Value


This research aims to analyze the effects of profitability (ROA), liquidity (CR), assets growth, and firm size towards capital structure (DER) and the impact on firm value (PBV).This research uses secondary data from yearly financial statement of food and baverages companies listed in Indonesian Stock Exchange for period 2013-2017. The research design uses descriptive quantitative research and causality. Sampling method uses purposive sampling method, with some predetermined criteria, the number of sample is 17 manufacturing companies. The analysis technique used is panel data regression. The research results shows that the profitability (ROA) and firm size partially have negative effect and not significant on capital structure (DER). The liquidity (CR) and assets growth partially have negative effect and significantly on capital structure (DER). Then the capital structure (DER) partially have positive effect but not significantly influences the firm value (PBV). The profitability (ROA) partially have positive effect and significant on firm value (PBV). The liquidity (CR) and assets growth partially have negative and significant effect on firm value (PBV), and firm size partially have negative and not significant effect on firm value (PBV). Simultaneously profitability (ROA), liquidity (CR), assets growth and firm size effect on capital structure (DER). On the other side, simultaneously profitability (ROA), liquidity (CR), assets growth and firm size have effect on firm value (PBV).


Download data is not yet available.


Annisa, Rizka and Mochammad Chabachib. (2017). Effect Analysis of Current Ratio (CR), Debt to Equity Ratio (DER), Return on Assets (ROA), To Price To Book Value (PBV), With Dividend Payout Ratio As Intervening Variables. Diponegoro Journal of Management. Volume 6, Number 1, 2017. 1-15.

Ahmed and Nanda. (2004). Style Investing: Incorporating PBV in Value Stocks”. The Journal of Portofolio Management

Brealey, Richard A.,Myers, Stewart C, Marcus, Alan J. (2007). Fundametals of Financial Management Edition 2 e5. Erlangga: Jakarta

Brigham, F., Eugene, dan Joel, F Houston. (2001). Financial Management II. Jakarta: Salemba Empat

Brigham, E., & Gapenski. (1996). Intermediate Financial Management. Harbor Drive: Dryden Press

Chen, Li Ju., and Chen, Shun Yu. (2011). The influence of profitability on firm value with capital structure as the mediator and firm size and industry as moderators.Investment Management and Financial Innovation, Vol. 8, Issue 3, 2011

Dencik, Abdul Basyith., Fitriya Fauzi, Moh. Idris dan M. Noor Salim. (2018). Multivariat Statistic. Rajawali Press: Depok

Eriotis, et al. (2007). How Firm Characteristics Affect Capital Structure. Managerial Finance 33(5): 321-331 DOI:

Erwin, Umaiyah, and M. Noor Salim. (2018). Financial Ratio, Firm Size, Capital Structure and The impact on the Firm Value Non Perbankan Kategori LQ45”. Journal Ilmiah management and Bisnis Vol. 2 No. 3

Eugene F. Brigham, Michael C Ehrhardt. (2010). Financial Management Theory and Practice, 13th Edition-Cengage Learning. United States.

Esperanca, J. P., Gama, A. P., & Gulamhussen, M. A. (2003). Debt Policy Company Small Company: Are empirical (examination).Journal of Small Business and Enterprise Development, 10(1).

Gathogo, G., &Ragui, D. M. (2014). The Company’s capital structure Kenya: What Determines It? Research Journal of Finance and Accounting, 5(5).

Gitman, Lawrence J and Chad J. Zutter. (2010). Principles of Managerial Finance 13th Edition. Prentice Hall. Boston

Ghozali, H. Imam. (2011). Multivariate Analysis Application with IBM SPSS 19 Program. Diponegoro University Publishing Institute. Semarang

Gurajati, Damodaran N. and Dawn C. Porter. (2012). Ecometrika Fundamentals. Book 1 Edisi 5. Salemba Empat: Jakarta

Gul, S., Khan, M. B., Razzaq, N., & Saif, N. (2012). How Firm Characteristics Affect the Capital Structure in Banking and Insurance Sector (Case Pakistan). European Journal of Business and Management, 4(12).

Hermuningsih, Sri.(2013). Profitability, Growth Opportunity, Capital Structure and The Firm Value. Bulletin Of Monetary Economics and Banking Vol 16 No. 2 October 2013

Hidayati, Eva Eko. (2010). Analysis of the Effect of DER, DPR, ROE and Size on Manufacturing Company PBVs that are listed on the Indonesia Stock Exchange 2005-2007. Tesis. Program Study Magister Manajemen Program Pascasarjana Universitas Diponegoro. Semarang

Hirdinis M. (2019). Capital Structure and Firm Size on Firm Value Moderated by Profitability. International Journal of Economics and Business Administration Volume VII, Issue 1, 201

Husnan, Suad. (2008). Financial Management Theory and Application (Short Term Decision).Book 2 Edition First. BPFE: Yogyakarta

Jacob, Jufri and Taslim, Fadli Ali. (2017). The Impacts of The Ratio of Liquidity, Activity And Profitability Towards Company Value With Dividend Policy As Intervening Variables. IOSR Journal of Business and Management (IOSR-JBM). ISSN: 2319-7668. Volume 19, Issue 10. Ver. IV. (October. 2017), PP 01-07

Jones, C. P. (2000). Investments: Analysis and Management. 7th Edition, New York: John Wileys& Sons

Manoppo, H., Arie, F.V. (2016). The Influence of Capital Structure, Company Size and Profitability towards Automotive Company Value of IDX Period 2011-2014. Journal EMBA. Vol. 4, No. 2, 485-497

Masngudi and M. Noor Salim. (2012). Research Methology for Economics and Business. Trianandra University Press. Jakarta

Moeljadi. (2014). “Factors Affecting Firm Value: Theoretical Study on Public Manufacturing Firms in Indonesia”. South East Asia Journal of Contemporary Business, Economics and Law, Vol. 5, Issue 2 (Dec) ISSN 2289-1560

Mouamer, F. M. A. (2011). The determinants of capital structure of Palestine-listed companies. The Journal of Risk Finance, 12 (3),226-241 DOI:

Munawir. (2007). Analysis of Financial Statement. Liberty. Yogyakarta.

Myers, S. C., &Majluf, N. (1984). Corporate Financing and Investment Decisions when Firms have Information that Investors do not have. Journal of Financial Economics, 13, 187- 221. DOI:

Niesh, A.J. and Velnampy, T. (2014). Firm Size and Profitability: A Study of Listed Manufacturing Firms IN Sri Lanka. International Journal of Business and Management, Vol. 9, No. 4, 57-64.

Nugroho, A. (2006). Analysis of Factors Affecting the Capital Structure of a Go-Public Company on the Jakarta Stock Exchange for the 1994-2004 Period. Tesis. Semarang: UniversitasDiponegoro

Ogbulu, Onyemachi Maxvell and Emeni, Francis Kehinde. (2012). Capital Structure and Firm Value: Empirical Evidence from Nigeria. International Journal of Business and Social ScienceVol. 3 No. 19; October 2012

Ozkan, Aydin, (2001). “Determinant of Capital Structure and Adjustment to Long Run Target: Eviden from UK Company Panel Data”, Journal of Business Finance & Accounting, 28, pp. 175- 198 DOI:

Pahuja, Anurag and Anug Sahi. (2012). Factors Affecting Capital Structure Decision: Empirical Evidence From Selected Indian Firms. International Journal of Marketing, Financial Service, & Management Research. 1 (3).

Paminto, Ardi., Setyadi, Djoko., & Sinaga, Jhonny,. (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 Vol.8, No.33, 2016

Purwanto and Jillian Agustin. (2017). Financial Performance towards Value of Firms in Basic and Chemicals Industry. European Research Studies Journal Volume XX, Issue 2A, 2017. DOI:

Purwohandoko.(2017). The Influence of Firm’s Size, Growth, and Profitability on Firm Value with Capital Structure as the Mediator: A Study on the Agricultural Firms Listed in the Indonesian Stock Exchange. International Journal of Economics and Finance; Vol. 9, No. 8; 2017

Priya, K, Nirmalathasan B, and Piratheepan T. (2015). Impact of Capital Structure on the Firm Value Case Study of Listed Manufacturing Companies in Sri Lanka. Scholar World-IRMJCR. Volume. III, Issue I, January 2015

Rajhans, Rajni Kant. (2013). Financial Determinant Of Firm’s Value Evidence From Indian Firms, ZENITH International Journal of Business Economics & Management Research ZIJBEMR, Vol.3 (5), MAY (2013)

Ramlall, Indranain. (2009). “Determinants of Capital Structure Among Non-Quoted Mauritian Firms under Specificity of Leverage: Looking for a Modified Pecking Order Theory”International Research Journal of Finance and Economics- Issue 31. pp. 83-92

Ross, A. Stephen, Randolph W. Westerfield, Jeffrey Jaffe. (2010). Corporate Finance 9th Edition. McGraw Hill. Singapore

Safrida, Eli. (2008), Effect of Capital Structure and Company Growth on Company Values in Manufacturing Companies on the Jakarta Stock Exchange. Tesis. Sekolah Pascasarjana Universitas Sumatera Utara. Medan

Salim, M. Noor and Evelin Sri Wahyuni. (2019). The Effect of Internal, External Factors on Corporate Performance and Its Impact on Corporate Value in Indonesia Manufacturing Componies in the Automotive Sub Sector and Its Components in 208-2017. International Journal of Engineering Technologies and Management Research Vol. 6 (Iss. ) June 2019

Sartono, Agus. (2010). Financial Management Theory and Aplication BPFE: Yogyakarta

Serghiescu, Laura and Ligia V, Viorela. (2014). Determinant Factors of Capital Structure of a Firm Empirical Analysis. Procedia Economics and Finance 15 (2014) 1447-1457

Sheikh, N.A., and Zongjun, Wang. (2011). Determinants of Capital Structure An Empirical Study of Firms in Manufacturing Industry of Pakistan. Journal of Managerial Finance. Vol. 37 No. 2, 2011. pp. 117–133

Sugihen, Syafruddin Ginting. (2003). “Effect of Capital Structure on Productivity of Assets and Financial Performance and the Value of Open Manufacturing Industry Companies in Indonesia”. Disertasi. Program Pascasarjana Universitas Airlangga. Surabaya.

Sujoko and U. Soebiantoro. (2007). Effect of Stock Ownership Structure, Leverage, Internal Factors and External Factors on Company Values. Journal of Management and Entrepreneur. Vol.9. No. 1. Maret: 41-48

Taswan. (2003). Analysis of the Effect of Insider Ownership, Debt Policy and Dividends on Company Values and the Affecting Factors. Journal Business and Economy, Vol 10 No. 2

Titman, S. & Wessels, R. (1988). “The Determinants of Capital Structure Choice”. Journal of Finance, 43(1): 1-19 DOI:

Van Horne, James, John M. Wachowicz. (2008). Fundamentals of Financial Management 13th Edition. Prentice Hall. England

Weston, J. Fred; Eugene F. Brigham.(1998). Financial Management, Terjemahan Wasana

Winarto, Jacinto. (2015).The Determinants of Manufacturing Firm Value in Indonesia Stock Exchange. International Journal of Information, Business and Management.Vol 7 No. 4 Nov 2015

Zuhro, Idah. (2019). The Effects of Liquidity, Firm Size, and Profitability on the Firm Value with Mediating Laverage. The 2nd International Conference on Islamic Economics, Business, an Philanthropy (ICIEBP) Theme: “Sustainability and Socio Economic Growth” volume 2019

How to Cite