Analysis of Capital Structure and Profitability on Firm Value of Companies Listed on the Sharia Stock List

Ulfa Ni’matus  Sa’adah; Rifaatul Indana

doi:10.14421/jai.2023.2.2.096-104

Authors

Ulfa Ni’matus Sa’adah Department of Islamic Banking, IAI Al Muhammad, Cepu
Rifaatul Indana UIN Sunan Kalijaga Yogyakarta

DOI:

https://doi.org/10.14421/jai.2023.2.2.096-104

Abstract

Purpose: This study aims to analyse the capital structure and profitability on the firm value on the Sharia Stock List.

Methodology: This study uses independent variables of capital structure, namely Debt to Equity Ratio (DER) and profitability (ROE). The dependent variable is firm value as measured by Tobin's Q variable. The research method is descriptive quantitative research using hypothesis testing.

Findings: The results of this study are the capital structure variable partially has a negative and significant effect on firm value. Profitability variable partially has a negative and significant effect on firm value.

Novelty: Researcher try to identify and further examine the effect of capital structure and profitability on the value of Sharia Stock List.

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