Analysis The Effect of Capital Structure and Capital Expenditure on Firm Value Through Profitability as an Intervening Variable in The Infrastructure Sector Listed on The Indonesia Stock Exchange

This research investigates the impact of capital structure and capital expenditure on firm value, with profitability acting as a mediating variable, within the infrastructure sector of the Indonesia Stock Exchange from 2018 to 2022. This research was undertaken due to inconsistencies in prior studies, some of which suggested that capital structure and capital expenditure do not impact firm value, but are instead influenced by profitability. The population for this study comprises all 70 companies in the infrastructure sector listed on the Indonesia Stock Exchange. The sampling technique employed is purposive sampling, targeting companies listed before 2019 and not on the “special monitoring” listing board. This approach yielded a sample of 33 companies, resulting in a total of 165 data points. Path analysis in regression tests was utilized to analyze the data. The results of this study indicate that profitability can mediate the impact of capital structure and capital expenditure on firm value. The mediating effect of profitability on capital structure is partial, while its effect on capital expenditure is full.