THE MEASUREMENT OF CAPITAL STRUCTURE AND PROFITABILITY ON COMPANY’S VALUE
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Date
2020
Journal Title
Journal ISSN
Volume Title
Publisher
Solid State Technology
Abstract
Burdensome regulations and mining commodity price decreased has impact to the financial
performance some of mining industries in Indonesia. The need for fresh capital to improve
the financial performance has led these industries to restructure their sources of capital.
The research analyzed and investigated the capital structure measured by debt to equity
ratio, profitability measured by return on asset and earning per share and its effect to
company’s value measured by the stock price. The research method uses descriptive and
verificative methods. The investigations employed the panel data regression models.
Observations were made on 31 mining and mining service industries listed in Indonesia
Stock Exchange for 2015-2019 period used the purposive sampling method. The findings
showed that debt to equity ratio has negative and significant effect to the stock price, return
on asset and earning per share has positive and significant effect to the stock prices during
the investigation period.
Description
Keywords
debt to equity ratio, return on assets, earning per share, stock price