ABSTRACT
The importance of research : Increasing the value of the company is the main goal of managers to maximize shareholder wealth. Four interrelated factors in determining corporate value, namely capital structure, profitability, company's growth, and corporate size. Profitability is the main factor that directly affects the value of the company or indirectly through the growth of the company. While the company's growth is the second factor that directly affects the value of the company. Research purposes: This study aims to examine the role of capital structure and firm growth in mediating the effect of profitability on firm value, and to examine the role of capital structure in mediating the effect of firm growth on firm value. The concept of influence between variables in this study is a tiered effect, by placing capital structure and company growth as the intervening variable for profitability, and capital structure as intervening company growth. Research method: The sample size of this study was 132 manufacturing companies which were determined based on the Slovin formula and were taken randomly from a population of 199 manufacturing companies listed on the Indonesia Stock Exchange in 2021. Result : Partially, profitability has a significant positive effect on firm value and a significant negative effect on capital structure, while capital structure, firm growth, and firm size have a positive but not significant effect on firm value. Capital Structure is not able to mediate Profitability in influencing Firm Value. Company growth has a positive but not significant effect on profitability.
Keywords : Capital Structure, Profitability, Company Growth, Company Size, Corporate Value.