The purpose of this study was to examine the role of profitability as a mediating variable in influencing firm value. This study uses a sample of manufacturing companies listed on the Indonesia Stock Exchange from 2016 to 2018. The data used is panel data, with data analysis using multiple regression. Based on the Sobel test, profitability plays a role in mediating the effect of firm size on firm value. The effect of firm size on firm value is indirect, however, through profitability. Therefore, the market price of the shares of large-scale companies will increase if the resulting profitability is high. The capital structure and managerial ownership directly influence firm value. The results showed that managerial ownership and firm size had a positive effect on profitability, while capital structure had no effect on profitability. Capital structure and managerial ownership have a negative effect on firm value, while firm size and profitability have a positive effect on firm value. The main finding of this study is that profitability acts as an intervening variable in mediating the relationship between firm size and firm value.

Abstract
1. Introduction
2. Literature Review
    2.1. Trade-Off Theory
    2.2. Pecking Order Theory
    2.3. Agency Theory
    2.4. Signaling Theory
3. Research Methods
    3.1. Data
    3.2. Data Analysis
    3.3. Sobel Test
4. Results and Discussion
    4.1. Descriptive Statistics
    4.2. Regression Analysis Results
    4.3. Discussions and Implications
5. Conclusions and Limitations
References

• Bambang SUDIYATNO(Department of Management, Faculty of Economics and Business, Universitas Stikubank, Indonesia) Corresponding Author
• Elen PUSPITASARI(Department of Accounting, Faculty of Economics and Business, Universitas Stikubank, Indonesia.)
• Titiek SUWARTI(Department of Accounting, Faculty of Economics and Business, Universitas Stikubank, Indonesia.)
• Maulana Muhammad ASYIF(Department of Management, Faculty of Economics and Business, Universitas Stikubank, Indonesia.)