THE EFFECT OF CAPITAL STRUCTURE, SALES GROWTH, AND COMPANY AGE ON COMPANY VALUE

Abstract

The high rate of economic growth causes competitiveness between companies in increasing profits. Competitiveness requires each company to have advantages over other companies. These advantages are expected to maximize company profits and increase company value which can be influenced by capital structure, sales growth, and company age. In addition, global and domestic economic dynamics have a significant impact on financing structures, operational performance, and market responses to companies, especially in the 2021-2023 period, which is a period of economic recovery. Of course, this will affect government regulations that are guidelines for infrastructure sector companies.

The purpose of this study is to determine the effect of capital structure, sales growth, and company age on company value in infrastructure companies listed on the Indonesia Stock Exchange for the period 2021-2023. This study uses 6 infrastructure companies as research samples. The results have been selected using a purposive sampling method from 65 companies listed on the Indonesia Stock Exchange for 5 years.

This study was processed using SPSS 22 software and used multiple linear regression analysis techniques to test the hypothesis. The results of this study indicate that capital structure has a positive and significant effect on company value, while sales growth does not have a significant effect on company value, while company age has a negative and significant effect on company value.