The Effects Moderates the Relationship Between Capital Structure and Firm Value

Suhadak, *; Hung, Jung Hua; Indarwanta, Didik; Nuzula, Nila Firdausi; Sаifi, Muhаmmаd

doi:10.31838/jcr.07.13.139

Cited by 1 publication

(2 citation statements)

References 12 publications

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“…However, for investors, the company's debt cannot affect the capital structure. This finding supports the previous researches by Suhadak et al (2020), Harahap andWardhani (2011), andSugiarto (2011). The results of this study do not support the findings reported by Sualehkhattak and Hussain (2017), Adetunji et al (2016), Suzulia et al (2020), Asif and Aziz (2016), Ayuba et al (2019), Hasbi (2015, and Nguyen et al (2020) found that capital structure affects firm value.…”

Section: Hypothesis Testingsupporting

confidence: 93%

“…In contrast, long-term debt was found to be the most critical determinant of a firm's value. The same result where the capital structure does not affect firm value was reported by Suhadak et al (2020), Harahap andWardhani (2011), andSugiarto (2011). However, Sualehkhattak and Hussain (2017), Adetunji et al (2016), Suzulia et al (2020), Asif and Aziz (2016), Ayuba et al (2019), Hasbi (2015), and Nguyen et al (2020) reported a positive effect of capital structure on firm value.…”

Section: Introductionsupporting

confidence: 82%

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The Effect of Institutional Ownership, Capital Structure and Company Growth on Firm Value: Evidence from Indonesia

Suhandi

2021

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This study aims to examine the effect of institutional ownership, capital structure, and firm growth on firm value in companies listed on the Indonesia Stock Exchange (IDX). This study uses 32 companies in the LQ45 index listed on the Indonesia Stock Exchange, selected using the purposive sampling method from 2015 to 2019. This type of research is quantitative causality, which is analyzed using the multiple linear regression analysis methods with the help of SPSS version 24 to process data. The results showed that institutional ownership and firm growth positively affected firm value, while capital structure showed a negative effect on firm value. Research implications suggest that to improve the company’s management performance, providing the right decisions to obtain sustainable profits must also control efficiency and cost-effectiveness and manage the resources owned so that they can continue to grow and develop into a successful company.

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Section: Hypothesis Testingsupporting

confidence: 93%