The Influence of Financial Performance, Sales Growth, and Investment Decisions on Firm Value with Capital Structure as an Intervening Variable in Manufacturing Companies in the Miscellaneous Industry Sector Listed on the Indonesia Stock Exchange from 2019 to 2022

Abstract

The purpose of this research is to obtain empirical evidence regarding the role of capital structure in intervening the effects of financial performance, sales growth, and investment decisions on firm value. The sample used in this study consists of manufacturing companies in the miscellaneous industry sector listed on the Indonesia Stock Exchange for the period 2019-2022, with 9 companies selected based on purposive sampling criteria. The software used for analysis is WarpPLS version 8.0. The results of the study indicate that financial performance has a positive and significant effect on firm value, while sales growth and investment decisions do not significantly affect firm value. Additionally, financial performance and investment decisions positively and significantly impact capital structure, whereas sales growth does not affect capital structure. Furthermore, capital structure is capable of intervening the effect of investment decisions on firm value, but it does not intervene the effects of financial performance and sales growth on firm value.