Increase in Company Value is Determined by Sales Growth, Capital Structure, and Company Size, with Profitability as a Mediating Variable
Hanna Yuliyani(a*), Mutiara Nurhalisa(b), Adhi Widyakto(c), Oktavie Fresiliasari(d), Yohanes Suhardjo(e)

(a*,b,c)Department of Management, Faculty of Economics at the University of Semarang
(d,e)Department of Accounting Faculty of Economics University of Semarang

Abstract

This study aimed to analyze the effect of sales growth, capital structure, and company size on firm value through profitability as a mediating variable (Case Study on Food and Beverage Companies listed on the Indonesia Stock Exchange 2020-2023). This study hypothesizes that sales growth, capital structure, company size, and profitability significantly affect firm value.
This study used 55 companies as samples, obtained using purposive sampling, namely sampling techniques with certain considerations. Data analysis in this study uses SmartPLS, which includes convergent validity, discriminant validity, composite reliability, second-order confirmatory factor analysis, R2, Q2, and hypothesis testing.
The results showed that sales growth has a significant positive effect on profitability. Capital structure does not affect profitability. Company size has a significant positive effect on profitability. Sales growth does not affect firm value. Capital structure has a significant positive effect on firm value. Firm size has a significant positive effect on firm value. Profitability has a significant positive effect on firm value. Sales growth has a significant positive effect on firm value through profitability. Capital structure does not affect firm value through profitability. Firm size has a significant positive effect on firm value through profitability.

Keywords: Sales Growth- Debt Equity Ratio- LN Size- Return On Asset- Tobins^q

Topic: Economics