Citation:

Dea Nabila Hasna, Indah Yuliana. "Whether Profitability Intervenes The Possibility of Leverage on the Firm Valuation in Eastern Europe?" International Research Journal of Economics and Management Studies, Vol. 3, No. 2, pp. 260-274, 2024.

Abstract:

This paper intends to identify the influence of leverage on corporate value with profitability as an intervening variable in developing countries of Eastern Europe. This research employs an associative approach methodology. The demographic sample for this research comprises exclusively construction and real estate enterprises that are publicly included in the Warsaw Stock Exchange and Bucharest Stock Exchange. The samples were collected from his 44 enterprises utilizing a targeted sampling method. The writers utilized the data disseminated by the firm on the official websites of the Stock Exchange. The data utilized in this investigation comprises quantitative data acquired from secondary sources. The research employed path analysis as the methodology and the Smart PLS version 3.0 program as the tool. From the outcomes of this research, it can be inferred that leverage does not influence firm value through profitability in both sectors of Poland, both sectors of Romania, the Real Estate sector of Poland, the construction sector of Romania and the real estate sector of Romania. Contrary, Leverage affects firm value through profitability in the Construction sector of Poland. This research exclusively examines the entities included in a specific list of construction and real estate firms in developing countries of eastern Europe. It is expected that this paper will provide suggestions for corporate management regarding the importance of profitability for improving corporate value. This research examines the influences of leverage on company value, with profitability as an intervening variable, among the Construction and Real Estate enterprises listed in Poland and Romania.

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Keywords:

Poland, Romania, Leverage, Profitability, Firm Value.