The objective of this paper is to investigate the influence of investment growth on the relation between equity value and earnings. Investment growth is measured by ratio capital expenditure to book value of assets. This model is developed by Kallapur and Trombley (1999). Sample in this study is all listed companies in Indonesia Stock Exchange from 2008 until 2011 appropriate to the sample criteria. This study uses regression analysis to test the hypothesis. The result of this research is consisten to alternate hypothesis that investment growth influences relation between equity value and earnings. The result of regression analysis shows that investment growth positively affects on the relation of equity value and earnings.