JASa (Jurnal Akuntansi, Audit dan Sistem Informasi Akuntansi)

Vol. 5 No.3/ December 2021

ISSN 2550-0732 print / ISSN 2655-8319 online
DOI;10.36555/ jasa.v5i3.1681

THE EFFECT OF CAPITAL STRUCTURE, FIRM SIZE, FIRM GROWTH, AND

PROFITABILITY ON FIRM VALUE (EMPIRE STUDY ON MINING SECTOR
COMPANIES LISTED ON THE INDONESIA STOCK EXCHANGE 2015-2020)

Tasya Novitasari1*, Sunarto2

Universitas Stikubank, Semarang, Indonesia
[email protected]*, [email protected]

Abstract: The purpose of this study was to determine the effect of capital structure, firm
size, firm growth, and profitability on firm value in mining sector companies listed on the
Indonesia Stock Exchange for the 2015-2020 period. The capital market is a means for
making investments that allow investors to place their funds in an asset according to the
risk they are willing to bear with the expected level of profit. In this research, the research
method used is the descriptive quantitative method. The number of samples in this study
is 116 data from companies in the mining sector on the IDX. Determination of the sample
using the purposive sampling technique. The data collection technique uses the
documentation method by collecting records and documentation that leads to more
accuracy. In proving and analyzing this, the classical assumption test, multiple linear
regression test and f test (simultaneous), and t-test (partial) are used. The test results
show that the variables of capital structure, firm size, firm growth, and profitability
simultaneously affect firm value. The results of the partial test show that the capital
structure (X1) has a sig value of 0.000 which means ≤ 0.05 so that it affects the firm
value. Company size (X2) has a sig value of 0.695, which means ≥ 0.05 so it has no
effect on firm value. The firm growth (X3) has a sig value of 0.189, which means ≥ 0.05
so it has no effect on firm value. Likewise with the profitability variable (X4) has a sig
value of 0.950 which means ≥ 0.05 so it does not affect firm value.
Keywords: Capital Structure, Firm Size, Firm Growth, Profitability, Firm Value.

INTRODUCTION
The capital market in Indonesia consists of many companies with various sectors.
The stock price index of each share of each sector listed on the Indonesia Stock
Exchange (IDX) is included in the Sectoral Stock Price Index (SSPI). SSPI is the main
indicator that describes the movement of stock prices.
The value of the company can provide maximum shareholder prosperity if the
company's share price increases. The higher the share price, the higher the prosperity
of shareholders. Maximizing the value of the company is the main goal of the company.
The value of shares can be reflected in the market price of the shares. Stock prices in
the capital market are formed based on an agreement between investor demand and
supply. Firm value is very important for a company, so it is important to explore all
possible factors that will have an impact on firm value.
Capital structure is a comparison between the amount of long-term debt with the
company's capital. What is meant by own capital is capital which is divided into retained
earnings and participation in company ownership. The optimal capital structure is a

Submitted: November 09, 2021; Accepted: December 02, 2020;

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 JASa (Jurnal Akuntansi, Audit dan Sistem Informasi Akuntansi)
Vol. 5 No.3/ December 2021
ISSN 2550-0732 print / ISSN 2655-8319 online
DOI;10.36555/ jasa.v5i3.1681

capital structure that optimizes the balance between risk and returns to maximize share
prices.
Several studies have been conducted on the effect of capital structure on firm
value but still show varying results including (Syardiana, et al. 2015) states that capital
structure does not affect firm value, while research by (Ramdhonah, et al. 2019),
(Febriana, et al. 2016) explained that capital structure has a significant effect on firm
value.
The firm size is considered to affect the firm value because the larger the firm
size, the easier it is for the company to obtain sources of funding that can be used to
achieve company goals. However, on the other hand, it will cause a lot of debt because
the risk of the company fulfilling its responsibilities is very small. Companies that
generate large profits tend to have greater retained earnings so that they can meet their
funding needs to expand their business or create new products from internal funding
sources. The greater the retained earnings, the greater the need for funds originating
from debt.
Several studies have been conducted regarding firm size on firm value, namely
(Indriyani, 2017) which states that firm size does not affect firm value. However, unlike
the research conducted by (Febriana, et al. 2016) Suwardika and (Mustanda, 2017) and
Rumondor, et al. (2015) stated that firm size has a significant effect on firm value.
Firm growth is a ratio that shows the company's ability to maintain its economy
during economic growth and its business sector. According to (Kusumajaya, 2011) that
growth is an increase or decrease in the total assets owned by the company. The assets
of a company are assets used for the company's operational activities, it is expected to
increase the company's operational results so that it will increase the trust of outsiders.
The company's growth can provide a positive signal that is expected by parties inside
and outside the company. According to (Syadiana, et al. 2015) company growth will
produce higher returns because growth has beneficial aspects for investors.
Several studies have been conducted regarding the company's growth on the
value of the company, but there are still varying results, including states that firm growth
has a significant effect on firm value, while research by (Gustian, 2017) and (Syardiana,
et al. 2015) states that firm growth has a significant positive effect on firm value.
Profitability is a variable that is also able to affect firm value. Profitability is the net
result of various policies and decisions implemented by the company. The value of the
company is determined by the profitability of the company, which means that higher
profits create a greater possibility that more dividends will be distributed to investors
(shareholders) to create high firm value.
Companies that can generate higher profits indicate that the company's
performance is getting better so that it can generate good responses from investors
which have an impact on increasing the stock price of a company. If the profitability of a
company is high, it shows the company is working efficiently and effectively in managing
the company's assets in obtaining profits for each period. Investors who invest shares in
a company certainly have a goal to get a return, where the higher the company's ability
to generate profits, the greater the return expected by investors, resulting in the value of
the company increasing.

Submitted: November 09, 2021; Accepted: December 02, 2020;

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Vol. 5 No.3/ December 2021
ISSN 2550-0732 print / ISSN 2655-8319 online
DOI;10.36555/ jasa.v5i3.1681

Several studies have been conducted regarding the profitability on firm value, but
there are still many different results, including (Moniaga, 2013) revealing that profitability
does not affect firm value. Meanwhile, in contrast to the research conducted by
(Pasaribu, et al. 2016), (Indriyani, 2017) states that profitability has a significant effect on
firm value.
Signaling Theory, According to experts, a signal is an action taken by the
company's management that provides clues to investors about how the future
management of the company's prospects will be. Information released by the company
is important because it influenced the investment decisions of parties outside the
company. This information is important for investors or business people. Because
information essentially presents information, notes, or descriptions, both for current and
future past conditions for the survival of the company and how it affects the company.
Companies with favorable prospects will try to avoid selling shares and seek any
new capital needed by other means, including the use of debt that exceeds the target's
normal capital structure. Companies with less favorable prospects will tend to sell their
shares. Announcement of share issuance by a company is generally a signal that
management views the company's prospects as bleak. If a company offers to sell new
shares more often than usual, the share price will decrease, because issuing new shares
means giving a negative signal which can then suppress the stock price and the
company's prospects are bright.
Companies with favorable prospects will try to avoid selling shares and seek any
new capital needed by other means, including the use of debt that exceeds the target's
normal capital structure. Companies with less favorable prospects will tend to sell their
shares. Announcement of share issuance by a company is generally a signal that
management views the company's prospects as good. If a company offers to sell new
shares more often than usual, the share price will decrease, because issuing new shares
means giving a negative signal which can then suppress the stock price and the
company's prospects are bright.
Trade off Theory, According to experts, the implications of trade-off theory are:
(1) Companies with large business risks must use less debt than companies with low
business risks, because the greater the business risk, the greater the use of debt, the
higher the interest expense, which will make it more difficult for finances. companies, (2)
companies that are subject to high taxes to a certain extent should use a lot of debt
because of the tax shield, (3) the target debt ratio will be different from one company to
another. Profitable companies and tangible assets have a higher target debt ratio.
Unprofitable companies with high risk and intangible assets have lower debt ratios and
rely more on equity.
The trade-off theory of leverage is a theory that explains that the optimal capital
structure is found by balancing the benefits of financing with debt (favorable corporate
tax treatment) with higher interest rates and bankruptcy costs. This concept explains that
the company's performance will increase along with the increase in the use of leverage.
It comes to a point when the expected costs of financial pressure or bankruptcy costs
are greater than interest tax shields, thereby reducing the value of the company. The
trade-off suggests that an organization or company should consider a reasonable debt

Submitted: November 09, 2021; Accepted: December 02, 2020;

Published: December 29, 2021; Website: http://journalfeb.unla.ac.id/index.php/jasa 514
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Vol. 5 No.3/ December 2021
ISSN 2550-0732 print / ISSN 2655-8319 online
DOI;10.36555/ jasa.v5i3.1681

ratio and try to achieve this goal in the long run. In this way, the company gets big profits
by using debt as a cheap source of financing.
The firm value is the company's performance as reflected by the stock price
formed by supply and demand in the capital market which reflects the public's
assessment of the company's performance. The investor's perception of the company is
seen from the firm value. The firm value can be measured by the state of the company's
stock price in the market. The reflection of the public's assessment of the company's
performance in real terms creates the company's performance, the share price shows
how well the management is performing on behalf of the shareholders.
The firm value depends on the value of the shares outstanding on the IDX, the
higher the share price of the company, the higher the firm value. Every company certainly
wants a high company value and can attract the attention of investors. Maximizing
shareholder wealth is one of the company's goals that cannot be ignored. The market
value of a company is an important measure of shareholder wealth. There are several
types of firm value, namely (1) nominal value, (2) market value, (3) intrinsic value, (4)
book value, and (5) liquidation value.
Capital structure is a balance between debt and capital owned by the company.
The capital structure in this study is measured by the Debt to Equity Ratio (DER), which
is the ratio used to measure the level of use of debt to the total capital owned by the
company. In good business conditions, using debt as business capital can accelerate
the development of the company if the company can optimize its business operations to
get the expected return so that it can also show the company has good business
prospects for the future, which in turn will affect the value of the company. Large
companies will need large funds to support their operations and one alternative to fulfill
them is with foreign capital (debt) if their capital is insufficient.
Capital structure is a balance or combination of foreign capital with its model, in
other words, capital structure is a proportion in meeting the company's expenditure
needs with long-term funding sources originating from internal funds and external funds.
Thus the capital structure is only part of the financial structure.
According to experts, firm size is a scale that can be classified as the size of the
company in various ways, including the company's total assets, log size, stock market
value, and others. In addition, firm size can also be described through total assets, total
sales, average sales of assets, and average total assets of the company. The size of a
company can be seen from the assets it has. Larger companies are considered to tend
to have better conditions. The firm size with a large and long-standing company will
determine the achievement of profitability and stability, easier access to capital markets,
and lower transaction costs when compared to small and newly established companies.
The larger the firm size, the easier it is for the company to obtain internal and
external sources of funds. Easier accessibility in obtaining these sources of funds will
allow larger companies to have greater flexibility and the ability to raise funds in a short
time. If these sources of funds can be managed optimally to produce good business
feedback, then this can attract potential investors to invest their shares in related
companies. This will be in line with the increase in firm value (Ramdhonah, et al. 2019).

Submitted: November 09, 2021; Accepted: December 02, 2020;

Published: December 29, 2021; Website: http://journalfeb.unla.ac.id/index.php/jasa 515
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Vol. 5 No.3/ December 2021
ISSN 2550-0732 print / ISSN 2655-8319 online
DOI;10.36555/ jasa.v5i3.1681

Profitability is the company's ability to generate profits. Profitability is one of the

barometers of the success of a company. Profitability is one of the fundamental aspects
of the company because, in addition to providing a great attraction for investors who will
invest their funds, companies are also a measuring tool for the effectiveness and
efficiency of using all resources in the company's operational processes (Ramdhonah et
al., 2019).
Based on some of these definitions, it can be found that profitability is the
company's profit and return on investment. The survival of the company is influenced by
many things, including the profitability of the company itself. Profitability is used to
determine the level of profit earned by the company in a period, to know the progress of
profits from year to year, to know the amount of net profit after tax with own capital, and
to know the productivity of all company funds used both loan capital and own capital.

METHODS
The data collection method in this research is the documentation method.
Researchers collect notes and documentation that lead to more accuracy. The data
source used is secondary data. According to (Indriantoro, 2014) secondary data is
research data obtained indirectly through intermediaries (obtained or recorded/historical
reports compiled in archives). The secondary data used comes from the published
annual financial reports published on the Indonesia Stock Exchange (IDX) in 2015-2020.

Population
The population is a generalization area consisting of objects/subjects that have
certain quantities and characteristics determined by researchers to be studied and then
drawn conclusions (Sugiyono, 2010). The population in this study are all mining sector
companies listed on the Indonesia Stock Exchange (IDX) in 2015-2020.

Sample
The sample is part of the total and characteristics possessed by the population
(Sugiyono, 2010). Sampling in this research using purposive sampling method with the
following criteria: Companies in the mining sector listed on the Indonesia Stock
Exchange (IDX) in 2015 to 2020. Companies in the mining sector that do not publish
financial reports on the Indonesia Stock Exchange (IDX) from 2015 to 2020. Companies
in the mining sector that do not have complete financial data on the Indonesia Stock
Exchange (IDX) from 2015 to 2020.
After purposive sampling, the research sample was 23 companies for 6 years, so that
138 research data were obtained.

RESULTS AND DISCUSSION

Deskriptive Statistics
Descriptive statistics are statistics used to analyze data by describing or
describing data that has been collected as well as without the intention of making
conclusions. This analysis explains the minimum, maximum, and mean values of the

Submitted: November 09, 2021; Accepted: December 02, 2020;

Published: December 29, 2021; Website: http://journalfeb.unla.ac.id/index.php/jasa 516
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Vol. 5 No.3/ December 2021
ISSN 2550-0732 print / ISSN 2655-8319 online
DOI;10.36555/ jasa.v5i3.1681

total capital structure, firm size, firm growth, profitability used by the sample. Following
are the results of descriptive statistical analysis:

Table 2. Deskriptive Statistics

N Minimum Maximum Mean Std. Deviation

The value of the 138 -116.488 243.249 8.823 34.032
company
Capital Structure 138 -32.282 101.574 2.325 10.906
Company Size 138 23.654 32.263 29.506 1.579
Company Growth 138 -.991 369.591 4.229 33.813
Profitability 138 -2.829 4.012 .056 .533
Valid N (listwise) 138
Source: SPSS processing 2021

From the results of descriptive statistics, it is known that: The capital structure
(X1) has a minimum value of -32.282, a maximum value of 101.574, a mean of 2.325,
and std. deviation of 10.906. The firm size (X2) obtained a minimum value of 23,654, the
maximum value of 32.263, the mean of 29.506, and std. deviation of 1.579. The firm
growth (X3) obtained a minimum value of -0.991, a maximum value of 369.591, a mean
of 4.229, and an std. deviation of 33,813. Profitability (X4) obtained a minimum value of
-2.829, a maximum value of 4.012, a mean of 0.056, and std. deviation 0.533. Firm value
(Y) has a minimum value of -116.488, a maximum value of 243.249, a mean of 8.823,
and std. deviation of 34,032.

Classical AssumptionTest
Normality Test
A normality test is a test of the normality of the data to be analyzed. Based on
the results of the normality test using the SPSS program, the skewness ratio and the
kurtosis ratio were obtained. Skewness and Kurtosis can be used to determine the level
of normality of the data, using the process of calculating the skewness ratio and kurtosis
ratio by looking at the skewness and kurtosis values below as follows::

Tabel 3. Normality Test before Outliers

Descriptive Statistics
N Skewness Kurtosis
Statistic Statistic Std. Error Statistic Std. Error
Unstandardized 138 4.473 .206 35.746 .410
Residual
Valid N (listwise) 138
Source: SPSS processing 2021

Submitted: November 09, 2021; Accepted: December 02, 2020;

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Vol. 5 No.3/ December 2021
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DOI;10.36555/ jasa.v5i3.1681

In the above results, the value of the skewness ratio and the kurtosis ratio before
the outliers are as follows:

𝑆𝑡𝑎𝑡𝑖𝑠𝑡𝑖𝑐 𝑆𝑘𝑒𝑤𝑛𝑒𝑠𝑠
𝑍𝑠𝑘𝑒𝑤𝑛𝑒𝑠𝑠 =
𝑆𝑡𝑑. 𝐸𝑟𝑟𝑜𝑟
4,473
= = 21,7135922
0,206

𝑆𝑡𝑎𝑡𝑖𝑠𝑡𝑖𝑐 𝐾𝑢𝑟𝑡𝑜𝑠𝑖𝑠
𝑍𝑘𝑢𝑟𝑡𝑜𝑠𝑖𝑠 =
𝑆𝑡𝑑. 𝐸𝑟𝑟𝑜𝑟
35,746
= = 87,1853659
0,410

From the analysis, the skewness value is 21.7135922 > 1.96, meaning that the
data is not normally distributed. The kurtosis value is 87.1853659 > 1.96, meaning that
the data is not normally distributed.

Table 4. NormalityTest after Outliers

Descriptive Statistics
N Skewness Kurtosis
Statistic Statistic Std. Error Statistic Std. Error
Unstandardized Residual 116 .227 .225 .206 .446

Valid N (listwise) 116

Source: SPSS processing 2021

In the results above, the value of the skewness ratio and the kurtosis ratio after
the outliers are as follows:
𝑆𝑡𝑎𝑡𝑖𝑠𝑡𝑖𝑐 𝑆𝑘𝑒𝑤𝑛𝑒𝑠𝑠
𝑍𝑠𝑘𝑒𝑤𝑛𝑒𝑠𝑠 =
𝑆𝑡𝑑. 𝐸𝑟𝑟𝑜𝑟
0,227
= = 1,00888889
0,225

𝑆𝑡𝑎𝑡𝑖𝑠𝑡𝑖𝑐 𝐾𝑢𝑟𝑡𝑜𝑠𝑖𝑠
𝑍𝑘𝑢𝑟𝑡𝑜𝑠𝑖𝑠 =
𝑆𝑡𝑑. 𝐸𝑟𝑟𝑜𝑟
0,206
= = 0,46188341
0,446

From the analysis, the skewness value is 1.00888889 < 1.96, meaning that the
data is normally distributed. The kurtosis value is 0.46188341 < 1.96, meaning that the
data is normally distributed.

Submitted: November 09, 2021; Accepted: December 02, 2020;

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DOI;10.36555/ jasa.v5i3.1681

Multicollinearity Test
According to Ghozali (2016), the multicollinearity test is a test to determine the
correlation between independent variables in the regression model. This test is detected
using tolerance and VIF values. The following are the results of the multicollinearity test:

Table 4. Multikolinieritas Test

Coefficients

Standardize
Unstandardized d Collinearity
Coefficients Coefficients Statistics
Toleranc
Model B Std. Error Beta t Sig. e VIF
1 (Constant) 6.912 8.945 .773 .441
Capital Structure .958 .042 .909 22.843 .000 .987 1.013
Company Size -.119 .303 -.016 -.393 .695 .975 1.026
Company Growth -.108 .082 -.053 -1.322 .189 .971 1.030

Profitability .086 1.377 .002 .063 .950 .987 1.013

a. Dependent Variable: Company Value
Source: SPSS processing 2021

In the test results, it can be seen that each independent variable has a tolerance
value of ≥ 0.10 and VIF ≤ 10. So it can be concluded that there is no multicollinearity
problem between independent variables.

Autocorrelation Test
Autocorrelation test is a test of assumptions in regression where the dependent
variable is not correlated with itself. The meaning of correlation with itself is that the value
of the dependent variable is not related to the variable itself. This study used the Durbin-
Watson test. Here are the test results:

Table 5. Autocorrelation Test

Model Summary
Std. An error
Adjusted R of the Durbin-
Model R R Square Square Estimate Watson
1 .910a .828 .822 5.057761 1.955
Predictors: (Constant), Profitability, Company Size, Capital Structure, Company
Growth b. Dependent Variable: Firm Value
Source: SPSS processing 2021

Submitted: November 09, 2021; Accepted: December 02, 2020;

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The data above shows the Durbin Watson value of 1.955. With four independent
variables and the number of observations of 116 data, the table values are obtained as
follows:
dL = 1,6265
dU = 1,7690
4-dL = 2,3735
4-dU = 2,231
So it can be concluded that the Durbin Watson value is between the dU value
and the 4-dU value, it is clear that the value of dU < DW < 4-dU (1.7690 < 1.955 < 2.231)
which means that the autocorrelation is free.

Heteroscedasticity Test
According to Ghozali (2016) the heteroscedasticity test is a test to determine the
difference in variance from the residuals of one observation to another in the regression
model. This test uses the Glejser test. Here are the test results:

Table 6. Heteroscedasticity Test

Coefficients
Standardize
Unstandardized d
Coefficients Coefficients
Model B Std. Error Beta t Sig.
1 (Constant) 3.153 5.011 .629 .530
Capital Structure -.038 .024 -.154 -1.631 .106
Company Size .034 .170 .019 .203 .840
Company Growth -.051 .046 -.106 -1.116 .267
Profitability .129 .771 .016 .168 .867
a. Dependent Variable: AbsRes2
Source: SPSS processing 2021

Based on the results of the table above, it can be seen that each independent
variable has a value of sig ≥ 0.05 so that it is free from heteroscedasticity symptoms.

Multiple Linear Regression Test

In this study uses multiple linear regression analysis models which intend to
determine the magnitude of the effect of capital structure, firm size, firm growth,
profitability on firm value. The results of multiple linear regression are as follows:

Submitted: November 09, 2021; Accepted: December 02, 2020;

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Table 7. Multiple Linear Regression Test

Coefficients
Unstandardized Standardized
Coefficients Coefficients
Model B Std. Error Beta t Sig.
1 (Constant) 6.912 8.945 .773 .441
Capital Structure .958 .042 .909 22.843 .000
Company Size -.119 .303 -.016 -.393 .695
Company Growth -.108 .082 -.053 -1.322 .189
Profitability .086 1.377 .002 .063 .950
a. Dependent Variable: Company Value
Source: SPSS processing 2021

According to the results of the multiple linear regression test, the regression
equation is made as follows::

Y = α + β1X1 + β2X2 + β3X3 + β4X4 + e

= 6,912 + 0,958X1 -0,119X2 -0,108X3 + 0,086X4

Based on the results of the multiple linear regression equation above, it has been
explained as follows: The constant value of 6.912 means that if the variables of capital
structure, firm size, firm growth, and profitability are equal to zero, the firm value will be
reduced by 6.912. 1 = 0.958, which means that when the capital structure variable
increases by 1 unit, it will increase the firm value by 0.958. 2 = -0.119 means that when
the firm size variable decreases by 1 unit, it will reduce the firm value by -0.119. 3 = -
0.108 means that if the firm growth variable decreases by 1 unit, it will reduce the firm
value by -0.108. 4 = 0.086 means that if the profitability variable increases by 1 unit, it
will increase the firm value by 0.086.

F Test
Based on (Ghozali, 2013) the independent variable as a benchmark in the model
must have a simultaneous influence on the dependent variable, this is called the F test.
This test is carried out by looking at the sig level of 0.05 or 5%. If the value of sig ≤ 0.05.
The following are the results of the F test:
Table 8. F Test
ANOVAb
Sum of Mean
Model Squares df Square F Sig.
1 Regression 13562.362 4 3390.590 132.544 .000a
Residual 2813.904 110 25.581
Total 16376.266 114
a. Predictors: (Constant), Profitability, Company Size, Capital Structure,
Company Growth

Submitted: November 09, 2021; Accepted: December 02, 2020;

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Vol. 5 No.3/ December 2021
ISSN 2550-0732 print / ISSN 2655-8319 online
DOI;10.36555/ jasa.v5i3.1681

ANOVAb
Sum of Mean
Model Squares df Square F Sig.
1 Regression 13562.362 4 3390.590 132.544 .000a
Residual 2813.904 110 25.581
Total 16376.266 114
b. Dependent Variable: Firm Value
Source: SPSS processing 2021

Based on the table above, it can be seen that the sig value shows a value of
0.000 ≤ 0.05, meaning that the variables of capital structure, firm size, firm growth, and
profitability have a joint effect on firm value.
Coefficient of Determination (R2)
The coefficient of determination is used as a measure of how far the model's
ability to explain the dependent variable is. If the ability of the independent variable in
explaining the dependent variable is very limited, it means that the value of the coefficient
of determination is small or close to zero. Indicators that show the stronger the ability to
explain changes in the independent variable to the dependent variable show the
coefficient of determination is close to one, so the independent variable almost provides
all the information to predict the dependent variable. From the coefficient of
determination, a value is obtained to measure the contribution of several independent
variables to the dependent variable which is usually expressed in percentages. Here are
the test results:

Table 9. Coefficient of Determination (R2)

Model Summary
Adjusted R Std. An error of
Model R R Square Square the Estimate
a
1 .910 .828 .822 5.057761
a. Predictors: (Constant), Profitability, Company Size, Capital Structure,
Company Growth
Source: SPSS processing 2021

In the table above, it can be seen that the value of Adjusted R Square is 0.822 or
82.2%. This means that 82.2% of firm value is influenced by capital structure, firm size,
firm growth, and profitability, while the remaining 17.8% is influenced by other factors not
included in this study.

Hypothesis Test (t-Test)

Based on Ghozali (2013), the t-test can show the magnitude of the influence of
one explanatory variable (X) in explaining the dependent variable (Y). The test is carried
out by comparing the sig t-count with the provision that if the value of sig ≤ 0.05, then H0
is rejected, meaning that there is a significant effect between the independent variables
on the dependent variable. Here are the test results:

Submitted: November 09, 2021; Accepted: December 02, 2020;

Published: December 29, 2021; Website: http://journalfeb.unla.ac.id/index.php/jasa 522
 JASa (Jurnal Akuntansi, Audit dan Sistem Informasi Akuntansi)
Vol. 5 No.3/ December 2021
ISSN 2550-0732 print / ISSN 2655-8319 online
DOI;10.36555/ jasa.v5i3.1681

Table 10. t-Test

Coefficients
Unstandardized Standardized
Coefficients Coefficients
Model B Std. Error Beta t Sig.
1 (Constant) 6.912 8.945 .773 .441
Capital Structure .958 .042 .909 22.843 .000
Company Size -.119 .303 -.016 -.393 .695
Company Growth -.108 .082 -.053 -1.322 .189
Profitability .086 1.377 .002 .063 .950
a. Dependent Variable: Company Value
Source: SPSS processing 2021

The table above is described as follows: Effect of Capital Structure on Firm Value
In table 4.10 it can be seen that the significant value of the capital structure is 0.000 (<
0.05). So, H1 is accepted, which means that in this study it can be concluded that the
capital structure has a positive effect on firm value. The Effect of Firm Size on Firm Value
In table 4.10 it can be seen that the significant value of company size is 0.695 (> 0.05).
So, H2 is rejected, which means that in this study it can be concluded that firm size does
not affect firm value. The Effect of Firm Growth on Firm Value In table 4.10 it can be
seen that the significant value of the company's growth is 0.189 (> 0.05). So, H3 is
rejected, which means that in this study it can be concluded that firm growth does not
affect firm value. The Effect of Profitability on Firm Value In table 4.10 it can be seen that
the significant value of profitability is 0.950 (<0.05). So, H4 is rejected, which means that
in this study it can be concluded that profitability does not affect firm value.

CONCLUSION
The capital structure partially has a positive influence on the value of the mining
sector companies listed on the IDX in 2015-2020. The results of this study indicate that
the company is considered capable of fulfilling its obligations in the future following the
provisions set by the lender, meaning that the higher the capital structure, the higher the
firm value. The firm size in partially does not affect the firm value in the mining sector
companies listed on the IDX in 2015-2020. The results of this study indicate that the
larger the size of a company, the easier it is for the company to obtain funding sources
which can then be utilized by management to increase the value of the company. The
possibility that can occur from the results of this study is that companies are more likely
to prefer internal funding than debt so that the size of the company does not affect the
use of external funding sources. The firm growth partially does not affect the firm value
in the mining sector companies listed on the IDX in 2015-2020. The results of this study
indicate that there is a decrease in the total assets owned by the company followed by a
decrease in the value of the outstanding share price which is an illustration that the
company's condition is not good. The firm growth is highly expected by internal and
external parties of a company because it can provide a positive aspect for them.
Profitability partially has no effect on firm value in mining sector companies listed on the

Submitted: November 09, 2021; Accepted: December 02, 2020;

Published: December 29, 2021; Website: http://journalfeb.unla.ac.id/index.php/jasa 523
 JASa (Jurnal Akuntansi, Audit dan Sistem Informasi Akuntansi)
Vol. 5 No.3/ December 2021
ISSN 2550-0732 print / ISSN 2655-8319 online
DOI;10.36555/ jasa.v5i3.1681

IDX in 2015-2020. The results of this study indicate that increased company profitability
will reduce company value because from an investor's perspective, companies that can
generate high profitability mean that the company is not able to manage the company's
capital, including the share capital that has been invested by investors properly. This
further reduces investor confidence that the capital owned has been used in investments
that are not profitable so that the decision of investors to invest their shares in related
companies is inappropriate.

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Submitted: November 09, 2021; Accepted: December 02, 2020;

Published: December 29, 2021; Website: http://journalfeb.unla.ac.id/index.php/jasa 524
 JASa (Jurnal Akuntansi, Audit dan Sistem Informasi Akuntansi)
Vol. 5 No.3/ December 2021
ISSN 2550-0732 print / ISSN 2655-8319 online
DOI;10.36555/ jasa.v5i3.1681

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Submitted: November 09, 2021; Accepted: December 02, 2020;

Published: December 29, 2021; Website: http://journalfeb.unla.ac.id/index.php/jasa 525