The Role of Profitability in Moderating the Relationship between Capital Structure and Company Values (Empirical Study on Healthcare Companies for the Period 2018 – 2022 Listed on the IDX)
Journal Title: International Journal of Social Science And Human Research - Year 2024, Vol 7, Issue 07
Abstract
During the COVID-19 pandemic in 2020, several companies experienced a decline. However, Healthcare Companies experienced an increase in Company Value. Judging from the PBV Ratio value, the health sector was in the spotlight during the Covid-19 pandemic. Researchers were advised to invest because it was considered profitable compared to other sectors in the current conditions. This research aims to test and explain the influence of Capital Structure on Company Value with Profitability as a Moderating Variable in companies in the Healthcare sector for 2018-2022. The type of research used is quantitative research with a data population of 33 companies and a sample of 80 data using the Purposive Sampling method. The Variabels used in this research are Solvency Ratio, Company Value, and Profitability Ratio as Moderating Variabels. Testing was carried out by carrying out Descriptive Statistical Analysis, Classical Assumption Tests (Normality, multicollinearity, Heteroscedasticity, Autocorrelation, Linearity), and Moderated Regression Analysis (MRA) using the help of the IBM SPSS 25 application. The results obtained after conducting the research were that Capital Structure had a significant positive effect on Company Value, Profitability has a significant positive effect on Company Value, and Profitability can moderate but weaken the relationship between Capital Structure and Company Values.
Authors and Affiliations
Sri Mulyati Aulia, Akhmadi, Dara Aprilia, Della Marchelina, Imas Masruroh
Keywords
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- EP ID EP739981
- DOI 10.47191/ijsshr/v7-i07-20
- Views 47
- Downloads 0
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