The Influence of Profitability and Macroeconomics on Company Value with Capital Structure as an Intervening Variable on Company Construction in Indonesia Stock Exchange Before and After the 2014 Government Era

Waluyo Jati; Yohanes Indrayono; Hendro Sasongko

doi:10.55927/esa.v4i4.73

Authors

Waluyo Jati Universitas Pakuan Bogor
Yohanes Indrayono Universitas Pakuan Bogor
Hendro Sasongko Universitas Pakuan Bogor

DOI:

https://doi.org/10.55927/esa.v4i4.73

Keywords:

Profitability, Macroeconomics, Firm Value, Capital Structure

Abstract

A study has been conducted with the title The Effect of Profitability, Ownership Structure, and Macroeconomics on Company Value with Capital Structure as an Intervening Variable in Construction Companies on the Indonesia Stock Exchange Before and After the 2014 Government Era. The method includes purposive sampling, obtaining 9 samples from the population of construction companies actively listed on the Indonesia Stock Exchange for the period 2007-2023. The research data obtained were taken from the Indonesia Stock Exchange, Bank Indonesia and the company's official website. The research data were processed using Panel Data Regression analysis in the Eviews 9 application. The results of the analysis showed that the best model was the Fixed Effect Model to measure Capital Structure and Company Value, after going through a model selection test using the Chow Test, Hausman Test and Lagrange Multiplier Test. The results of the study indicate that Profitability has a positive effect on capital structure in the period 2007-2023, as well as in the period before and after the 2014 government. Institutional ownership has a negative effect on capital structure in the period 2007-2023, as well as in the period before and after the 2014 government. Inflation has no effect on capital structure in the period 2007-2023, as well as in the period before and after the 2014 government. Exchange rates have a negative effect on capital structure in the period 2007-2023, as well as in the period before and after the 2014 government. Profitability has a positive effect on company value in the period 2007-2023, as well as in the period before and after the 2014 government.

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