Issue

Vol. 12 No. 1 (2025): June

Date Log

Submitted
8 November 2024
Accepted
27 June 2025
Published
27 June 2025

Copyright (c) 2025 Dara Ayu Nianty, Rustan DM., Sylvia Sylvia (Author)

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

Between Profit and Value: Can Capital Structure Carry the Weight?

https://doi.org/10.24252/minds.v12i1.52311
Dara Ayu Nianty
Institut Teknologi dan Bisnis Nobel Indonesia, Indonesia
Rustan DM.
Institut Teknologi dan Bisnis Nobel Indonesia, Indonesia
Sylvia Sylvia
Institut Teknologi dan Bisnis Nobel Indonesia, Indonesia

Corresponding Author(s) : Dara Ayu Nianty

dara@stienobel-indonesia.ac.id

Jurnal Minds: Manajemen Ide dan Inspirasi, Vol. 12 No. 1 (2025): June

Abstract

The Jakarta Islamic Index (JII) showcases firms with strong competitive advantage and investment appeal grounded in transparency and Sharia compliance. This study deepens understanding of capital structure dynamics by analyzing how profitability and growth opportunities shape firm value, both directly and through financial leverage. Drawing from a sample of 60 observations across 30 listed JII firms, the study employs panel data path analysis to test hypothesized relationships. Findings reveal that both profitability and growth opportunity significantly influence capital structure and firm value. Moreover, capital structure independently affects firm value, though it does not mediate the impact of the two antecedents. These insights refine capital structure theory in an Islamic equity context and illuminate the nuanced role of financial strategy in value creation. Practically, the results guide investors in screening high-potential Sharia-compliant firms and support managers in crafting funding strategies aligned with both financial performance and Islamic principles.

Keywords

Capital Structure Firm Value Profitability Growth Opportunity Signaling Theory
Nianty, D. A., DM., R., & Sylvia, S. (2025). Between Profit and Value: Can Capital Structure Carry the Weight?. Jurnal Minds: Manajemen Ide Dan Inspirasi, 12(1), 137–148. https://doi.org/10.24252/minds.v12i1.52311
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