Pengaruh Risiko Bisnis dan Ukuran Perusahaan pada Struktur Modal dan Nilai Perusahaan pada Perusahaan Farmasi di Bursa Efek Indonesia

This study aim is to determine the effect of business risk and the size of the firm on capital structure andfirm value. The population of this study were 9 companies in pharmaceutical sub-sectors listed on the Indonesia Stock Exchange. Sample size was determined by census method-taking all population as sample. This study used secondary data obtained from the ISE (Indonesia Stock Exchange) and ICMD (Indonesia Capital market Directory) in 2006-20 I 3. The study implemented Path Analysis Technique. The results show that, firstly, business risk and firm size is have a positive and significant impact on capital structure. Secondly, business risk has a negative and significant effect onfirm value, whereas size of the firm has a positive and significant effect on company value. On the other hand, and capital structure has positive yet not significant effect onfirm value. Thirdly, capital structure emerges as mediating variable in the affect of business risk on thefirm value. Keywords: business risk, company size, capital structure, firm value