VALUE OF THE FIRM IN CAPITAL STRUCTURE PERSPECTIVE (Case study of tourism companies in IndonesiaStock Exchange)

Abstract

This study aims to examine whether profitability, firm size, institutional ownership, growth affect
the capital structure and whether profitability, firm size, institutional ownership, growth affect the
value of the company through the capital structure. The sample used in this research is the tourism
industry sector companies listed in Indonesia Stock Exchange 2007-2014 period, which has
complete financial report and published in Indonesian Capital Market Directory (ICMD) as many
as 19 companies. The data collected were analyzed using Path Analysis. Path analysis obtained that
Return on Equity (ROE), Institutional Ownership (KIS), Growth Assets (GA) and Debt Asset Ratio
(DAR) is the direction or positive with Value of the Firm (PRICE) where every increase ROE, KIS
and GA followed by a rise in PRICE. On the other hand Firm Size (SIZE) has a negative relation to
PRICE where every increase of SIZE is followed by decrease of PRICE.