Observational analysis reveals significant effects of firm size on capital structure in property companies, suggesting insights for future investments.
Key Points
Profitability positively impacts firm value, while firm size significantly affects capital structure in the property sector.
Analysis of 78 observations showed that capital structure does not mediate profitability's effect on firm value.
The study utilized path analysis with purposive sampling, focusing on 13 firms over 6 years to assess firm dynamics.
Findings indicate that firm size serves as a mediator for capital structure's effect on firm value, highlighting its importance.