Effect of Growth Opportunity, Corporate Tax, and Profitability toward Value of Firm through Capital Structure (listed Manufacturing Companies of Indonesia)

• Main Authors: . Amarudin, M. Adam, U. Hamdan, A. Hanafi
• Format: Article
• Language: Russian
• Published: Government of the Russian Federation, Financial University 2019-10-01
• Series: Финансы: теория и практика
• Subjects: : growth opportunity; corporate tax; profitability; value of firm and capital structure
• Online Access: https://financetp.fa.ru/jour/article/view/901

The study aims to determine the Effect of growth opportunity, corporate tax, and profitability on the value of firm through the capital structure as an intervening variable at manufacturing companies in Indonesia Stock Exchange. The sample consists of 32 manufacturing sector companies listed in Indonesia Stock Exchange within 2013–2017. The study results show that growth opportunity and corporate tax have a positive effect on the structure of capital, in contrast to profitability, which affects negatively. Meanwhile, capital structure and profitability have a positive Effect on firm value. On the other hand, growth opportunity and corporate tax have no bearing on company value. Yet, capital structure does not mediate between growth opportunity and corporate tax to the value of firm. Nevertheless capital structure mediates the Effect of profitability on the value of firm.