THE EFFECT OF GROWTH OPPORTUNITY, FIRM SIZE, AND DEBT POLICY ON FIRM VALUE MEDIATED BY PROFITABILITY IN REAL ESTATE AND PROPERTY SECTOR COMPANIES ON THE INDONESIA STOCK EXCHANGE

Abstract

The purpose of this study is to obtain empirical evidence regarding the effect of Growth Opportunity, Firm Size, and Debt Policy on Firm Value, and examine the role of Profitability in mediating the effect of Growth Opportunity, Firm Size, and Debt Policy on Firm Value. The sampling technique used was purposive sampling method. The data used in this study is secondary data obtained from the financial statements of property and real estate companies listed on the Indonesia Stock Exchange for four years, 2016 to 2019.The data analysis technique uses path analysis techniques. The results of this study indicate that Growth Opportunity, Firm Size, and Debt Policy have a positive and significant effect on Firm Value; Profitability is able to mediate the relationship between Growth Opportunity, Firm Size, and Debt Policy to Firm Value. The implications that can be given from the research findings are that it can enrich the research model and support other empirical studies related to the effect of Growth Opportunity, Firm Size, and Debt Policy on Firm Value and the role of Profitability in mediating the effect of Growth Opportunity, Firm Size, and Debt Policy on Firm Value.

Keywords

• profitability
• growth opportunity
• firm size
• debt policy
• firm value