THE EFFECT OF CAPITAL STRUCTURE, SALES GROWTH, AND PROFITABILITY ON FIRM VALUE IN PROPERTY AND REAL ESTATE COMPANIES LISTED ON THE INDONESIA STOCK EXCHANGE (IDX) FOR THE 2021–2024 PERIOD

Abstract

This study aims to analyze the effects of Capital Structure, Sales Growth, and Profitability on Firm Value in companies in the property and real estate sector listed on the Indonesia Stock Exchange (IDX) for the period 2021–2024. The study employs a quantitative approach using secondary data obtained from the companies’ financial statements and annual reports. The research sample was determined using purposive sampling, resulting in 23 companies with a total of 92 observations. Capital Structure was proxied by the Debt-to-Equity Ratio (DER), Profitability was proxied by Return on Assets (ROA), and Firm Value was proxied by Price-to-Book Value (PBV). Data analysis was conducted using multiple linear regression with the aid of IBM SPSS Statistics. The results show that, when analyzed individually, Capital Structure has a positive and significant effect on Firm Value, whereas Sales Growth and Profitability do not have a significant effect on Firm Value. Thus, Capital Structure is a factor that companies should consider in increasing Firm Value, while Sales Growth and Profitability have not been able to influence Firm Value in the property and real estate sector during the study period.