THE IMPACT OF CAPITAL STRUCTURE ON COMPANY VALUE WITH PROFITABILITY AS AN INTERVENING VARIABLE (CASE STUDY ON PT. INDOFOOD CBP SUKSES MAKMUR TBK) PERIOD 2014-2023

Abstract

The purpose of this study is to examine how capital structure affects company value at PT Indofood CBP Sukses Makmur Tbk from 2014 to 2023, using profitability as an intervening variable. The method used is descriptive quantitative utilising secondary data from the yearly financial statements of the business. The Debt to Equity Ratio (DER) is used to measure capital structure, and the Price to Book Value (PBV) is used to measure company value, and profitability using Return on Equity (ROE). Data analysis is done with the help of Eviews 10 and statistical tests include both traditional assumption tests and multiple linear regression. The findings indicated that DER affects PBV both directly and through ROE. Profitability is proven to be a partial mediating variable in The connection between company value and capital structure.