Abstract: Firm Value is the investor's perception of the company's success rate that is often associated with stock prices. High stock prices make Firm Value also high, and increase market confidence not only in the company's current performance, but also in the company's future prospects, which can be measured by profitability and liquidity. The purpose of this study was to determine the effect of profitability and liquidity on Firm Value with Capital Structure as a mediating variable in 2014-2017. The study population includes all sea transportation companies listed on the Indonesia Stock Exchange in the 2014-2017 period. The sampling method used is the purposive sampling method, namely the determination of the sample using certain considerations in selecting the sample. The research population data were 41 companies and obtained a sample of 20 companies. Based on the results of the analysis, it was found that profitability had a negative and not significant effect on firm value. Liquidity has a positive and significant effect on firm value. Capital Structure has a negative and significant effect on firm value. Profitability has a negative and not significant effect on capital structure. Liquidity has a positive and significant effect on capital structure. Profitability has an indirect and insignificant influence on Firm Value when mediated by capital structure, liquidity has an indirect and insignificant influence on firm value when mediated by capital structure.
Keywords: Profitability, Liquidity, Firm Value, dan Capital Structure.
Title: The Role of Capital Structure Mediated the Effect of Profitability and Liquidity on Firm Value in 2014-2017
Author: Krisma Deana, I Putu Yadnya
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
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