Abstract:
This study aims to analyze the direct effects on proftability, taxes and growth
opportunity on frm value as well as the indirect influence for proftability, tax and
growth opportunity to frm value through a capital structure oncompanies and
mining companies listed in Indonesia Stock Exchange in 2011-2014 period. The
results showed that (i) proftability and growth opportunity hada positive effect
on the capital structure, (ii) taxes hada negative effect on the capital structure,
(iii) proftability and capital structure hada positive effect on frm value, (iv) taxes
and growth opportunity hadno effect on frm value, (v) proftability and growth
opportunity affected frm value through a capital structure as an intervening
variable.Multinational companies and mining companies in Indonesia Stock
Exchange tried to use external funding to run their operations to shrink the tax
paid in order to obtain large profts and to increase frm value.
Keywords:
frm value, capital structure, proftability, taxes, growth opportunity
