CAPITAL STUCTURE, FIRM SIZE, VERTICAL INTEGRATION, EXPORT INTENSITY AND FIRM VALUE
DOI:
https://doi.org/10.31000/tapbvj35Abstract
The textile and textile products (TPT) industry is one of Indonesia’s strategic manufacturing sectors, yet its profitability and firm value have been challenged by increasing import competition, rising production costs, and global market uncertainty. This study examines the effect of capital structure, firm size, vertical integration, and export intensity on profitability and firm value of TPT companies listed on the Indonesia Stock Exchange during 2021-2024. A quantitative research design was employed using secondary data from annual financial statements, analyzed through Partial Least Squares (PLS). Profitability was measured by Gross Profit Margin (GPM), while firm value was measured by PRICE-TO-BOOK Value (PBV). The findings reveal that capital structure and vertical integration positively and significantly influence profitability, whereas firm size and export intensity have no significant effect. In addition, capital structure, firm size, and profitability positively affect firm value, while vertical integration and export intensity show no significant influence. This study contributes to the literature by providing empirical evidence on the determinants of profitability and firm value in Indonesia’s TPT industry and highlights profitability as a key mechanism linking financial decisions to firm value. The study offers practical insight for managers and investors in improving corporate financial performance and value.
Downloads
Published
Issue
Section
License
The author submits the manuscript with the understanding that if it is accepted for publication, the copyright of the article will be granted to the Dynamic Management Journal (DMJ), Management Study Program, Faculty of Economics and Business, University Of Muhammadiyah Tangerang, Indonesia as the publisher of the journal
Dynamic Management Journal (DMJ) first publication rights with works licensed simultaneously under a Creative Commons Attribution-ShareAlike 4.0 International License (CC BY-SA 4.0) which allows others to share (copy and redistribute material in the media or any format) and adapt (remix, modify, and build upon material) the work for any purpose, even commercially with acknowledgment of the work's authorship and initial publication in Dynamic Management Journal (DMJ). Authors may enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal published version of the work (for example, posting it to an institutional repository or publishing it in a book), with an acknowledgment of its initial publication in the Dynamic Management Journal (DMJ). Authors are permitted and encouraged to post their work online (for example, in an institutional repository or on their website) prior to and during the submission process, as this can lead to productive exchanges, as well as earlier and larger citations of published work (See The Effect of Open Access).
