ANALYSIS OF THE INFLUENCE OF CAPITAL STRUCTURE AND PROFITABILITY ON FIRM VALUE IN THE FOOD AND BEVERAGE INDUSTRY SECTOR ON THE INDONESIA STOCK EXCHANGE

Abstract

This study aims to analyze the effect of capital structure and profitability on firm value in the food and beverage sector listed on the Indonesia Stock Exchange (IDX) over a specified period. Capital structure is measured using the debt-to-equity ratio (DER), while profitability is proxied by return on assets (ROA). Firm value is assessed through indicators such as price to book value (PBV) and return on equity (ROE). The research employs multiple linear regression analysis with panel data. The sample is selected using purposive sampling based on specific criteria. The results indicate that capital structure has a significant negative effect on firm value, while profitability has a significant positive effect. These findings highlight the importance of effective capital structure management and financial performance improvement in enhancing firm value.