The Effect of Capital Structure on Firm Value (Case Study on Mining Sector Companies Listed On the Indonesia Stock Exchange (Period 2014-2018)

Abstract

This study aims to determine the description and how much influence the Capital Structure (Debt to Equity Ratio - DER) on Firm Value (Price to Book Value - PBV), in mining sector companies listed on the Indonesia Stock Exchange for the 2014-2018 period, either simultaneously or simultaneously. Partial. This study discusses the DER variable as an independent or exogenous variable, and the PBV variable as the dependent or endogenous variable. The method used in this research is descriptive and verification method with a quantitative approach, so that the research method used is descriptive survey method and explanatory survey method. In the object of this research there is a population frame. The technique taken is purposive sampling technique. Types of data can be grouped into primary data and secondary data. Data collection techniques used are library research and field research. By using eviews, it is found that DER has a significant effect on PBV. Based on this study, the companies used as samples are still limited to companies registered in the mining sector so that further research needs to be carried out using different research samples in a longer observation time so that the results obtained can be generalized.