Abstract: This study aims to examine the effect of managerial ownership, profitability, and investment opportunity set on financial leverage and its impact on the firm value. The study conducted on manufacturing companies listed on the Indonesia Stock Exchange in 2012-2015. The type of research is hypothesis testing. 69 companies were chosen as the sample by using the purposive sampling method. Data obtained from annual reports are analyzed by using path analysis method. The results showed that (1) managerial ownership had no effect on financial leverage, (2) profitability affect negatively on financial leverage, (3) Investment opportunity set affect positively on financial leverage, (4) managerial ownership, and investment opportunity set have a positive effect on firm value, (5) profitability does not have effect on firm value (6) financial leverage does not mediate the influence of managerial ownership on firm value, (7) financial leverage mediates the effect of profitability and set of investment opportunities on firm value.