Profitable Companies in Indonesia Boost Firm Value Through Capital Structure
The study looked at how capital structure and profitability affect the value of companies in the Indonesian manufacturing sector. They analyzed data from 94 companies over a 10-year period. The findings showed that factors like firm size, volatility, and uniqueness influenced capital structure, while tangible assets did not. Intellectual capital and capital structure had a significant impact on profitability. Additionally, both capital structure and profitability were found to significantly influence firm value.