Profitability and Firm Size Drive Firm Value in Indonesian Stock Exchange.
The study looked at how profitability and firm size affect the value of manufacturing companies on the Indonesia Stock Exchange. They used financial data from 2015-2019 and found that profitability and firm size both influence the company's value. Additionally, the way a company is financed (capital structure) plays a role in determining its value. The researchers discovered that capital structure acts as a mediator between profitability and firm value, as well as between firm size and firm value for manufacturing companies in Indonesia.