International Journal of Arts and Humanities
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Title:
DETERMINANTS OF PROFITABILITY AND FIRM VALUES IN THE MANUFACTURING SECTOR OF FIRMS IN INDONESIA

Authors:
Hikma Niar, H. Abdul Rahman Mus, Hj. Masdar Mas'ud, Mursalim

Volume:2 Issue: 3

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1Hikma Niar, 2H. Abdul Rahman Mus, 3Hj. Masdar Mas'ud, 4Mursalim
1Doctoral Student, University of Muslim Indonesia
2,3,4Faculty of Economics, University of Muslim Indonesia

MLA 8
Pirade, Hikma, et al. "DETERMINANTS OF PROFITABILITY AND FIRM VALUES IN THE MANUFACTURING SECTOR OF FIRMS IN INDONESIA." Int. J. Arts&Humanities, vol. 2, no. 3, Mar. 2018, pp. 149-162, ijah.org/more2018.php?id=10. Accessed 2018.
APA
Pirade, H., Mus, H., Mas'ud, H., & Nur, H. (2018, March). DETERMINANTS OF PROFITABILITY AND FIRM VALUES IN THE MANUFACTURING SECTOR OF FIRMS IN INDONESIA. Int. J. Arts&Humanities, 2(3), 149-162. Retrieved from ijah.org/more2018.php?id=10
Chicago
Pirade, Hikma, H. Abdul Rahman Mus, Hj. Masdar Mas'ud, and Hj. Andi Nirwana Nur. "DETERMINANTS OF PROFITABILITY AND FIRM VALUES IN THE MANUFACTURING SECTOR OF FIRMS IN INDONESIA." Int. J. Arts&Humanities2, no. 3 (March 2018), 149-162. Accessed , 2018. ijah.org/more2018.php?id=10.

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Keywords:
Investment decisions, capital structure, growth, profitability, firm values

Abstract:
This study investigates the Determinants of profitability and firm values in the Manufacturing Sector of Firms in Indonesia. A total of 55 companies listed on the Indonesia Stock Exchange were used as samples. Observation data is used from 2014 to 2016. The Structural Equation Modeling Test using analysis of moment structures ver. 22 provides evidence that Investment decisions has a positive and significant effect on profitability but not for firm values. Capital structure has a positive and significant effect on profitability but not for firm values. Company's growth has a positive and significant effect on profitability and firm values and then the last causality is Profitability has a positive and significant effect on firm values.

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