This is very possible considering that Indonesia has 264 million population and 87 percent of them are Muslims (, 2019). The Indonesia Stock Exchange (IDX) stated that the Indonesian Islamic capital market is one of the largest markets in the world. One of the most attractive investment for investors is sharia investment because it is capable in providing beneficial results for both parties. The Indonesian government is trying hard to grow the Indonesian economy by attracting more investors (kemenkeu.go.id, 2018). A mediation test showed that ISR and capital structure does not mediate the effect of profitability on firm value. Profitability was found to have positive affect on ISR and negative affected the capital structure. The results show that profitability, ISR and capital structure have a positive significant effect on firm value.
The data were analyzed using Structural Equation Model (SEM) and Sobel test to analyze the indirect effect. 39 companies classified as basic and chemical industries and listed in the Indonesia Sharia Stock Index (ISSI) were sampled using the purposive sampling technique. The data used were obtained from annual reports of sampled firm as published on the Indonesia Stock Exchange (IDX) for the 2013–2018 period. This research is an explanatory research with a quantitative descriptive approach. The purpose of this study is to examine and analyze the intervening effect of Islamic Social Responsibility and capital structure on the relationship between profitability and firm value.