Determining Factors of Capital Structure and its Effect on the Value of Public Companies in Indonesia (original) (raw)
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The purpose of this study was to analyze the factors affecting capital structure in Indonesia. The variables used were DER as the dependent variable and as independent variables are profitability, growth opportunity, fixed asset tangibility, size, dividend payout ratio and shortterm debt to total assets. The sample used in this study is a company registered in LQ-45. And selected by using purposive sampling. Thus obtained 38 companies as a sample. The analytical method used is linear regression. The results obtained from this study is the variable profitability, tangibility fixed assets and short term debt to total assets that have a significant influence 5%. While the growth opportunity and size variables have a significant influence 10%. While the variable dividend payout ratio does not have a significant influence.
Capital Structure Determinants and Their Impact on Firm Value: Evidence From Indonesia
This study has two main purposes, i.e., the first is to discover and analyze capital structure determinants, and the second is to discover and analyze the influence of capital structure determinants on firm value in which capital structure treated as a moderating variable. Factors suspected to be determinants of capital structure consist of company growth, profitability, asset structure, leverage, and company size. The population in this study were manufacturing companies listed in Indonesian Stock Exchange. Using purposive sampling method, 125 companies with four years' (2008-2011) observation period were collected. The analysis tool used was multiple regression. The results showed that factors which significantly determined capital structure were fixed asset structure, leverage, profitability, and size, while company growth did not influence capital structure. Meanwhile, with capital structure as a moderating variable, asset structure, leverage, and profitability significantly influence the firm value, while company growth and company size did not influence the firm value.
Proceedings of the 11th Annual International Conference on Industrial Engineering and Operations Management, 2021
This study aims to analyze the Effect of Profitability (ROA), Asset Structure, Sales Growth, Company Size and Dividend Policy on Capital Structure (Case Study of Manufacturing Companies Listed on the Indonesia Stock Exchange 2015-2019 Period). The population used in this study is a company that is included in the category of manufacturing companies listed on the IDX in 2015-2019, totaling 148 companies. This study amounted to 30 companies in the five year study period, so the research data amounted to 150 data. The data collection method is done through documentation study; the analysis method uses multiple regression analysis. Testing in this study indicates that Return on Assets (ROA), Assets Structure (SA), Company Size, and Dividend Payout Ratio positively affect capital structure. In contrast, Sales Growth does not affect Capital Structure.
Determination of Capital Structure of Public Companies in Indonesia
Journal of Social Science Studies, 2019
Capital structure is definitely related to the company’s long-term expenditure. Capital structure compares long-term debt to own capital. Corporate funding policies can be obtained from internal and / or external companies. So the purpose of this study is to analyze the capital structure of public companies in Indonesia. In the process of determining capital structure determination using multiple linear regression statistics, the results of the study are Return On Assets, Total Asset Turnover, and Current Ratio have a negative influence on the capital structure of public companies in Indonesia. So it can be concluded that public companies in Indonesia use internal funds more than external capital because internal capital does not create a fixed burden for the company.
KnE Social Sciences
The determinants of capital structure have been debated among financial management researchers. This debate is caused by different research result about the determination of capital structure. The capital structure is a financing mix of short-term debt, longterm debt, and equity. This study investigates the determinants of capital structure in Manufacturing Companies listed on the Indonesia Stock Exchange. Tangibility, profitability, growth opportunities, business risk are used as independent variables, capital structure proxied by debt to equity ratio (DER) as dependent variables and firm size as a moderating variable. The population in this study is Manufacturing Companies listed on the Indonesia Stock Exchange (IDX) during the period 2010-2016; sampling technique used was purposive sampling and data analysis was done using panel data regression. The result shows that there is no significant impact of tangibility, profitability, and business risk to capital structure. The capital structure is significantly positively affected by the growth opportunities at Manufacturing Companies. Meanwhile, firm size as a moderating variable strengthens the positive and significant relationship between asset structure and capital structure. On the basis of these empirical findings, the determinants of capital structure are influenced by the growth of the firms. The firm's size strengthens the positive and significant relationship between asset structure and capital structure.
Academic Journal of Interdisciplinary Studies, 2020
The aim of the research is to analyse the effect of profitability, liquidity, and company’s size to company’s value and examines whetherDERis a mediating variable. Secondary data is taken from annual report of the companies. Analysis method used is multiple regression analysis (least square). The finding of the research showed thatDER mediated the relationship between CR andTobin’s Q. However DER is not a mediating variable for the relationship betweenRNOAand TOBINas well as between SIZE and Tobin’s Q. Mediating test is conducted by Sobel Test. The other finding is that RNOA positively affects to DER. CR negatively affects to DER. SIZE positively affects to DER and then DER negatively affects to Tobin’s Q. Recommendation for future research is to widen the samples, not just 42 companies, to add observed periods to give clearer description in long term.The next research can also use other dependent variables affecting capital structure and company’s value.
Key Indicators for Determining Capital Structure for Public Companies in Indonesia
Proceedings of the 3rd International Conference of Business, Accounting, and Economics, ICBAE 2022, 10-11 August 2022, Purwokerto, Central Java, Indonesia
This research has the purpose to explain the influence of assets consisting of asset structure (fixed assets ratio), liquidity (current ratio) and solvency (DAR) on capital structure (LTDER). This research has the population of tourism and hospitality companies that go public listed on the Indonesian Stock Exchange in the period 2018-2020, with total 35 companies, and using a sample technique, namely purposive sampling with a sampling technique with certain conditions, in order to obtain 22 companies that fullfills the criteria. sampling. This research uses data from secondary data collected by non-participant observation method. This research uses multiple linear regression analysis techniques. This paper produces research finding that the variable structure of the asset structure has no influence on the capital structure, the liquidity has an influence on the capital structure, and the solvency has an influence on the capital structure.
Determinants of Capital Structure and the Effect on Firm Value: Evidence from Indonesia
Asian journal of economics, business and accounting, 2024
Aims: To analyze the influence of macroeconomic factors (GDP Growth) and microeconomic factors (Tangibility and Profitability) on company value (Tobin's Q), as well as examine the mediating role of capital structure (Interest-bearing debt). Study Design: The design of the study is quantitative research with a panel data regression approach and path analysis to examine the relationship between macro and micro economic variables on firm value, as well as the mediating role of capital structure in the relationship.. Place and Duration of Study: Companies included in the Kompas 100 index listed on the Indonesia Stock Exchange for the period 2018-2022. Methodology: This study uses a population of companies listed in the Kompas 100 index on the Indonesia Stock Exchange for the period 2018-2022 and takes a sample of 70 companies that meet the criteria with purposive sampling method. A quantitative approach is used by analyzing panel data through panel data regression to test the effect of independent variables (GDP Growth, Tangibility, and Profitability) on the dependent variable (Firm Value) and the mediating variable Original Research Article
Analysis of Capital Structure in Various Industry Companies on the Indonesia Stock Exchange
https://www.ijrrjournal.com/IJRR\_Vol.8\_Issue.2\_Feb2021/IJRR-Abstract080.html, 2021
The finances of a company are determined by the capital structure. There are variables that effect the capital structure of a company, for example, such as asset structure, liquidity (quick ratio), and profitability (GPM). This study aims to determine the effect that occurs between asset structure with capital structure, liquidity with capital structure, and profitability with capital structure. The data collection technique used a purposive sample, and there were 9 samples of companies from 39 populations of various industry companies listed on the Indonesia Stock Exchange (BEI) in 2014-2018. The analysis model uses multiple linear regression. Based on the results of the F test, it shows that the value of Fcount>Ftable is 9.508>2.83, so that simultaneously the asset structure, liquidity, profitability have an effect on the capital structure of companies in various industry companies on the Indonesia Stock Exchange. Whereas in the t test, asset structure, liquidity, profitability do not partially effect the capital structure.
Determinants of Capital Structure: Empirical Evidence from the Indonesia Stock Exchange
2018
Capital structure strategy relates to the composition of debt and equity, which will deliver the highest profitability to the companies. To analyze the variables affecting the capital structure, this study utilized yearly financial statements from 2001 to 2015 with the exclusion of 2008, for 136 non-financial public companies listed on the Indonesia Stock Exchange. This study adopted an econometric approach of t-test, correlation coefficient, difference test and descriptive statistics analysis. The variables adopted are net debt-to-equity ratio as the dependent variable, size, profitability, asset structure, liquidity, sales growth and capital expenditure as the independent variable. This study found that for overall market, size, profitability, asset structure and sales growth have a significant relationship with capital structure. On the other hand, this study found no significant relationship between liquidity and capital structure. The findings of this study suggested that the m...