The Influence of Profitability and Liquidity on Firm Value with Capital Structure as an Intervening Variable

Abstrak

This research uses a quantitative approach with a population of companies in the consumer goods industry sector listed on the Indonesia Stock Exchange (IDX) for the 2022-2024 period. To answer the hypothesis, this research uses panel data multiple linear regression analyzed using Eviews version 12 software and path analysis. The population consisted of 51 companies, and using the purposive sampling method, the number of samples obtained was 30 companies. The results of this study indicate that profitability significantly affects firm value, as high profits reflect good performance prospects in the eyes of investors. Conversely, liquidity does not have a significant effect, because the efficiency of asset management and the creation of long-term value are considered more important than the ability to meet short-term obligations. Capital structure affects firm value because an optimal funding composition can increase efficiency and market confidence. However, capital structure does not mediate the relationship between profitability and firm value, nor between liquidity and firm value. In addition, profitability does not affect capital structure, while liquidity does because companies with high liquidity tend to rely on internal funds.