THE EFFECT OF CAPITAL STRUCTURE AND FINANCIAL STRUCTURE ON FIRM PERFORMANCE (An Empirical Study of The Financial Crisis 2008 and 2009 in Indonesia) (original) (raw)
Related papers
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...
The Effect of Capital Structure on Company Financial Performance
Jurnal Economia
This study aims to examine the effect of capital structure on the company's financial performance particularly in manufacturing companies listed on the Indonesia Stock Exchange for the 4 years period from 2014 to 2018. Capital structure is measured by Market Total Leverage (MTLEV), Market Long-Term Leverage (MLLEV) and Market Short-Term Leverage (MSLEV). On the other hand, the company's financial performance is measured by Return on Equity (ROE) and Price to Book Value (PBV). The populations in this study are manufacturing companies listed on the Indonesia Stock Exchange and the selection of samples was determined by purposive sampling method, with the final samples as many as 333 company-years. The type of data used is secondary data from IDX using multiple regression analysis methods. The results of the analysis show that the capital structure has negative and significant effect on the company's financial performance in each model.
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.
The Effect of Capital Structure on Firms’ Profitability: a Case Study of Indonesian Firms
The purpose of this research is to seek the impact of capital structure towards firms‘ profitability on Indonesian firms listed in LQ45 using panel data of five consecutive years (2013 to 2017). The data obtained are from audited financial statements of 24 constantly listed in LQ45 . This study used the linear regression to analyze the connection between total debt to represent capital structure and firms‘ profitability of Return on Assets. This study includes growth opportunity, firm size, tangibility, liquidity and non-debt tax shield as controlled variables. The research resulted in a significant positive relationship between firms‘ profitability and capital structure. Only liquidity provides a negative significant impact on profitability. In addition to that growth opportunity and size have insignificant negative influence, while tangibility and non debt tax shields have insignificant positive influence toward
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.
Asian Journal of Economics, Business and Accounting
The purpose of this study is to analyze the determinants of capital structure and how its affect firm value. The sample selected from public companies listed on the IDX which four (4) industries were selected by using stratified and purposive random sampling that have been selected 74 companies with 222 observations from 2017 to 2019. Estimation technique of panel data in this study by using the FEM approach. The results of hypothesis testing reveal that in the first model, three (3) variables that have a significant positive effect on the company's capital structure, namely AUR, LSIZE and ROA. Furthermore, in the second model, the company's capital structure has a negative effect on firm value. This study also reveals that companies tend to use debt as the first alternative when internal sources of funds are insufficient. Investors are advised to be careful in investing their funds in companies that have a very high debt utilization ratio, because in addition to burdenin...
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.
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
The Capital Structure’s Determinant in Firm Located in Indonesia
2018
This research aims to identify the capital structure’s determinant in companies located in Indonesia. This research uses 97 panel data of companies located in Indonesia listed in Indonesian Stock Exchanges during period of 2010-2015. Seven hypotheses are composed to represent the main theory of Capital Structure. The method uses in this research is the verification method using Multiple Regression Analysis, Classic Assumptions Test, as well as hypotheses testing. The result shows that Firm Growth, Sales Growth, Profitability, Tangibility, Cashflows and Institutional Ownership partially affected to Capital Structure. While the Firm Size have no impact on Capital Structure.