| This research is aimed to distinguish the difference between the capital structure of PT Sampoerna Agro Tbk before and after go public and also to find out whether the capital structure can affect the company's value. Capital structure of the company consists of long-term debt and equity. This research examines the company's value by using three different methods, which are Modigliani Miller Value (V), Enterprise Value Multiplier and Tobin Q. Capital structure is always associated with the company's value. Finance manager's decision of a company's capital structure is important and crucial since they are related and associated with company's value. Sources of fund can be categorized into internal and external sources. Internal sources are those acquired internally. External sources are those obtained from debt financing and equity financing. A combination between equity and debt financing affects a company's capital structure. This research examines six periods ranging from 2004 to 2009, divided into two time frames before go public (2004-2006) and after go public (2007-2009). This research utilizes "associative" method which examines the relationship between two or more variables. Qualitative analysis is used to explore the relationship between variables using quantitative data derived from PT Sampoerna Agro Tbk's consolidated financial statements for the years ended December 31, 2004 to December 31,2009. The analysis shows that before go public, the company's capital structure consist of more debt financing than equity financing, while after go public, the company's capital structure consists of more equity financing than debt financing. This research also shows the relationship between capital structure and company's value. Based on the three methods used, the change in the composition of the capital structure of the company (debt financing and equity financing) affects the company's value. If the company uses more equity financing, the company's value is higher. In this research, it shows that after go public whereby PT Sampoerna Agro Tbk's capital structure consists of more equity financing, the company's value is also increasing. |