scholarly journals Capital Structure and Firm Performance: A comparative Study of Oil & Gas and Manufacturing Sectors in the United States of America

2021 ◽  
Vol 7 (1) ◽  
pp. 29
Author(s):  
Adepoju Adeoba Asaolu
Keyword(s):  
New York ◽  
Firm Performance ◽  
Capital Structure ◽  
Stock Exchange ◽  
Secondary Data ◽  
The United States ◽  
Least Square ◽  
Debt Structure ◽  
Tax Shield ◽  
Manufacturing Sectors

This paper empirically examines the effects of capital structure on the performances of the Unites States’ Oil & Gas and Manufacturing sectors and investigates the differences in the dynamics of the two sectors. The study employs secondary data sourced from New York Stock Exchange (NYSE)/ NASDAQ for a period of ten (10) years, that is, 2010-2019. It utilized E-View 9.0 for generating the estimation results. The investigation has been performed using panel least square estimation technique and sectoral analysis on the data collected in order to test the set hypotheses. The result shows that although debt structure improved the performances of the firms, a sharp increase in such leverage tends to reduce firm performance for all the firms used. Coefficients namely asset tangibility, interest payment and dividend growth, directors’ shares/inside ownership and non-debt tax shield are quite significant in the result. They demonstrate positive relationships, indicating that these variables tend to affect firm performance on the average across both sectors; especially, the results show that the more efficient firms in terms of shielding taxation perform better. The study therefore recommends among other things that selection of debt as a source of capital finance should be done in line with the costs and benefits associated with the use of debt.

scholarly journals Determinants of Capital Structure and Their Effect to Company’s Value: Study in LQ 45 Companies Listed in Indonesia Stock Exchange

2020 ◽  
Vol 9 (3) ◽  
pp. 156
Author(s):  
Andi Kartika ◽  
Sunarto Sunarto ◽  
Faisal Riza Rahman ◽  
Zaky Machmuddah
Keyword(s):  
Capital Structure ◽  
Stock Exchange ◽  
Secondary Data ◽  
Least Square ◽  
Future Research ◽  
Tobin’S Q ◽  
Analysis Method ◽  
Tobin's Q ◽  
Dependent Variables ◽  
The Relationship

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.

scholarly journals Pengaruh Non-Debt Tax Shield Dan Cost Of Financial Distress Terhadap Struktur Modal Pada Perusahaan Sub Sektor Logam Dan Sejenisnya Yang Terdaftar Di Bursa Efek Indonesia (BEI) Tahun 2013-2017

2020 ◽  
Vol 1 (1) ◽  
pp. 55-73
Author(s):  
Muhammad Yusuf ◽  
Andika Kurniawan
Keyword(s):  
Capital Structure ◽  
Financial Distress ◽  
Stock Exchange ◽  
Secondary Data ◽  
Correlation Study ◽  
Positive Influence ◽  
Variable Cost ◽  
Tax Shield ◽  
Debt Tax Shield ◽  
The Capital Structure

This research aims to provide the influence of non-debt variable tax shield and cost of financial distress affect the capital structure of the company's sub-sector metals and the like listed on the Indonesia Stock Exchange in 2013-2017. The method on this research is a quantitative approach with the type of correlation study. The data collection techniques in this study use secondary data with saturated sampling techniques. The population of this research is a metal sub-sector company and the like listed on the Indonesia Stock Exchange (IDX). The samples in this study were as many as 16 metal sub-sector companies and the like listed on the Indonesia Stock Exchange (IDX). The results showed that both the partial and simultaneous variables of the non-debt tax shield and cost of financial distress had no effect on the capital structure of the metal sub-sector companies and the like listed on the Indonesia Stock Exchange ( IDX). It shows that the T-Test in a non-debt tax shield variable is obtained by the T-calculate result of 1.401 and the value of Sig. T. Acquired by 0, 165 > 0.05, then Ho accepted and H1 rejected which means there is no positive influence on the capital structure and in variable cost of financial distress obtained with the result of T-Calculate of 1.756 and the value of Sig. T. Acquired by 0, 083 > 0.05, then Ho is accepted and H1 is rejected which means there is no positive influence on the capital structure. Then simultaneously F test result in can with a fcalculate value of 2.295 with a level of Sig. 0, 108, because of the value of Sig. F > 0.05, then Ho accepted and H1 rejected. This means that there is no variable influence of non debt tax shield (X1) and cost of financial distress (X2) to the capital structure (Y).

scholarly journals THE INFLUENCE OF CAPITAL STRUCTURE, DIVIDEND PAY OUT ON FIRM VALUE AND FIRM PERFORMANCE : EVIDENCE FROM INDONESIA STOCK EXCHANGE

2020 ◽  
pp. 17-23
Author(s):  
Indrayati Indrayati
Keyword(s):  
Firm Performance ◽  
Capital Structure ◽  
Firm Value ◽  
Dividend Policy ◽  
Stock Exchange ◽  
Secondary Data ◽  
Financial Policy ◽  
Significant Positive Effect ◽  
Financial Reports ◽  
Positive Effect

The purpose of this study is to test empirically the effect of leverage, investment stock, bond, and dividend policy on firm value and firm performance for agriculture, basic chemical industry, consumer goods, and finance on the Indonesian stock exchange. The population of this study is 632 companies listed on the Indonesian stock exchange, with a sample of 236 companies in 2018-2019, secondary data sources from ICDM, and audited financial reports by collecting documentation data and processing data with moderate multiple linear regression. The findings of the research are that financial policy proxied by leverage, investment in stocks and bonds shows a significant positive effect on firm performance, and dividend policy also shows a significant positive effect on firm value. To increase the generalizability of research results, future studies will collect data with different populations or different countries. This study contributes to the performance and value of the company where the increase in leverage, investment, bonds, and dividends will increase the performance and value of the company. The implication of this research is to improve the performance and value of the company for the better. This research is limited to capital structure, dividend policy on firm value with firm performance as moderation. Further research can be developed with different samples and more for generalizations.

scholarly journals The Effect Of Capital Structure On Company Value With Roe As An Intervening Variable In The Banking Sector Listed In Bei 2015 – 2017

2019 ◽  
Vol 1 (1) ◽  
pp. 51-57
Author(s):  
Devy Dwi Puspitasari
Keyword(s):  
Capital Structure ◽  
Stock Prices ◽  
Firm Value ◽  
Banking Sector ◽  
Stock Exchange ◽  
Secondary Data ◽  
Numerical Data ◽  
Partial Least Square ◽  
Least Square ◽  
Company Value

Company value is the investor's perception of the level of success of the company that is often associated with stock prices. This study aims to examine the effect of capital structure and ROE as an intervening variable on the corporate value of the banking sector listed on the Stock Exchange in 2015-2017.It used quantitative research with an approach that uses numerical data in statistical analysis. With a sample of 10 registered banks and provide financial reports to the Indonesia Stock Exchange (IDX) in the period 2015-2017. In this study using secondary data and with Partial Least Square (PLS) analysis techniques. Research shows that capital structure variables and ROE do not have a significant effect on firm value. While the capital structure has a positive and significant effect on ROE.

scholarly journals The choice of capital structure: A study on energy industry in a developing country

Accounting ◽  
2021 ◽  
pp. 289-294 ◽  
Author(s):  
Nguyen Thi Viet Nga ◽  
Giang Ngoc Long
Keyword(s):  
Firm Performance ◽  
Capital Structure ◽  
Developing Country ◽  
Firm Growth ◽  
Least Square ◽  
Energy Industry ◽  
Firm Age ◽  
Short Term ◽  
Data Set ◽  
Tax Shield

The choice of capital structure has greatly contributed to the success of the firms in general and energy in particular. This study uses a sample data set of 250 energy firms over the period 2010-2019, and by using generalized least square (GLS) method to perform a survey. The main factors in this study include profitability, firm age, state shareholding and depreciation tax shield, etc. The study found that except firm growth, all factors including firm performance, age of firm, size of firm, asset structure, short-term solvency, and depreciation have significantly affected firm’s capital structure choice in the case of energy industry in a developing country. Furthermore, a positive effect was also found for size of firm and asset structure while a negative effect was detected for other factors such as firm performance, asset structure, firm age, short-term solvency, and depreciation. Through this research, we also conclude that the theory of pecking order, and the theory of representative cost are known as the basis for financial managers to build sound capital structures for businesses.

Disclosure of Corporate Social Responsibility, Company Performance, and Corporate Reputation as the Mediating Role: Indonesian Context

2021 ◽  
Vol 22 (3) ◽  
pp. 581-601
Author(s):  
Wuryan Andayani
Keyword(s):  
Firm Performance ◽  
Corporate Reputation ◽  
Stock Exchange ◽  
Secondary Data ◽  
Partial Least Square ◽  
Least Square ◽  
Company Performance ◽  
Mediating Role ◽  
Csr Disclosure ◽  
The Relationship

Research aims: This study aims to provide new empirical evidence regarding CSR practices and their impacts on firm performance and corporate reputation in the context of a developing country region, namely Indonesia.Design/Methodology/Approach This research samples were 70 companies listed on the Indonesia Stock Exchange with five years of observation. This study used secondary data, which already exists and was obtained from the Indonesia Stock Exchange's official website. Also, Partial Least Square was employed to test the hypothesis's parameter estimates.Research findings: The results revealed that CSR disclosure could improve firm performance but could not increase corporate reputation. Thus, companies that carry out CSR activities and pay attention to stakeholders mean that they (employees, customers, suppliers, investors, etc.) will contribute to the company’s economic performance. The results of this study also uncovered that the level of investor awareness of corporate reputation was still low. Investors were only oriented to short-term investments and did not care about the long-term viability of the company. It showed that corporate reputation did not fully mediate the relationship between CSR disclosure and company performance.Theoretical contribution/Originality: As this study develops scientific research in the fields of CSR, corporate performance, and corporate reputation as the mediating role, the findings of this research support the stakeholder theory that a company not only increases profits but also should be accountable to all stakeholders. Besides, corporate reputation partially mediated the relationship between CSR and firm performance. It indicated that in Indonesia, concern for corporate reputation was still low.

The Effect of Managerial Ownership, Financial Performance, Corporate Competition on Stock Prices with Capital Structure as the Intervening Variable in the Coal Mining Companies Listed on the Indonesia Stock Exchange

2020 ◽  
Vol 2 (1) ◽  
pp. 24-33
Author(s):  
Yulia Afriani ◽  
Abdul Rakhman Laba ◽  
Andi Aswan
Keyword(s):  
Capital Structure ◽  
Financial Performance ◽  
Coal Mining ◽  
Stock Prices ◽  
Stock Exchange ◽  
Secondary Data ◽  
Sampling Technique ◽  
Managerial Ownership ◽  
Firm Competition ◽  
Mining Companies

This study aimed to find out the effect of managerial ownership, financial performance, corporate competition on stock prices with capital structure as the intervening variable in the coal mining companies listed on the Indonesia Stock Exchange. Managerial ownership variables by the shareholding presentation. Financial performance variables by Total Asset Turnover (TATO). Firm competition variable by Concentration Ratio (CR). Capital structure variables by Debt to Equity Ratio (DER). Stock prices variable by Price to Book Value (PBV). The population of this study was the coal mining companies listed on the IDX. This study used Purposive as the sampling technique. The data source was secondary data from financial statements published through the IDX official website. This study used descriptive statistics and inferential statistics with a quantitative approach using regression techniques with the E-Views version 10 program. The results of this study showed that the dealings of managerial ownership had a positive and significant effect on DER, TATO had a negative and not significant effect on DER, while CR had a negative and significant effect on DER. The dealings of managerial ownership, TATO, DER has a positive and significant effect on PBV, while CR has a negative and not significant. The dealings of managerial ownership influences PBV through DER, interestingly TATO has no effect on PBV through DER and CR influences PBV through DER

Good Corporate Governance, Profitabilitas, Ukuran Perusahaan dan Struktur Modal

2017 ◽  
Vol 9 (1) ◽  
pp. 1-17
Author(s):  
Hesty Juni Tambuati Subing
Keyword(s):  
Capital Structure ◽  
Board Of Directors ◽  
Firm Size ◽  
Stock Exchange ◽  
Secondary Data ◽  
Institutional Ownership ◽  
Annual Reports ◽  
Financial Reports ◽  
Basic Industry ◽  
The Capital Structure

The purpose of this research is to know about the effect of these factors Corporate Governane proxy by Institutional Ownership and Number of Board of Directors, Firm Size, and Return On Asset in basic industry and chemistry towards capital structure, and also to determine which of those factors having powerful effect to the capital structure. This research is using secondary data, such as the financial reports, annual reports and other related information of basic industry and chemistry listed in Indonesian Stock Exchange which sample were taken from 45 companies for the period of 2013 to 2014, and the choosing of these samples was based on the purposive sampling method. Panel data is used to test the effect of Institutional Ownership, Board of Directors, Return on Asset and Firm Size among as independent variables, in regard to capital structure as dependent variables. The result shows that only Return On Asset have significant effect to the Capital Structure in the basic industry and chemistry. Meanwhile Institutional Ownership, Board of Directors and Firm Size have no effect to the Capital Structure in the basic industry and chemistry. Keywords: Institutional Ownership, Board of Directors, Return On Asset, Firm Size, Capital Structure

scholarly journals PENGARUH UKURAN PERUSAHAAN DAN RISIKO BISNIS TERHADAP STRUKTUR MODAL PADA PERUSAHAAN INDUSTRI OTOMOTIF YANG TERDAFTAR DI BURSA EFEK INDONESIA

2019 ◽  
Vol 15 (2) ◽  
pp. 165-187
Author(s):  
Mohamad Ali Wairooy
Keyword(s):  
Capital Structure ◽  
Automotive Industry ◽  
Stock Exchange ◽  
Linear Regression Analysis ◽  
Secondary Data ◽  
Sampling Technique ◽  
Multiple Linear Regression Analysis ◽  
Business Risk ◽  
Exchange Data ◽  
The Capital Structure

This study aims to examine and analyze the effect of partially or simultaneously the size of the company and business risk on the capital structure of the Automotive Industry Company Registered on the Indonesia Stock Exchange. Data collection uses secondary data using purposive sampling technique. The population in this study were all automotive industry companies as many as 17 companies listed on the Indonesia stock exchange for the period 2014-2016, while the samples taken were the number of observations for 3 years (2014-2016). The data obtained were analyzed using multiple linear regression analysis. The results showed that all hypotheses had a positive and significant effect based on t test and F test. This means that both partially and simultaneously the size of the company and business risk had a positive and significant effect on the capital structure of the Automotive Industry Company Listed on the Indonesia Stock Exchange.

scholarly journals Influence of Capital Structure on Corporate Performance of Listed Firm in PSX: Role of External Factors

2021 ◽  
Vol 7 (3) ◽  
Author(s):  
Abdul Hameed ◽  
Farheen Zahra Hussain ◽  
Khawar Naheed ◽  
Muhammad Sadiq Shahid
Keyword(s):  
Firm Performance ◽  
Capital Structure ◽  
Debt Financing ◽  
External Factors ◽  
Least Square ◽  
Total Debt ◽  
Integral Role ◽  
Equity Ratio ◽  
The Impact

Purpose: A company’s capital structure is a blend of its equity and debt financing and is considered a significant factor in the valuation of any firm. The decisions related to capital structure formation play an integral role for the firms, therefore; this research tends to explore the factors of capital structure and their impact on firm performance. For this purpose, financial data for different listed companies in PSX has been gathered, and dividends and taxes are used as firm external factors.  Design/Methodology/Approach: To examine the impact, the panel data has been used for the period 2016-2020 and panel least square has been applied. Findings: The findings suggest that among the variables current ratio, dividends, taxation, total debt to total equity ratio, and the firm size are statistically significant to profitability. The study also concludes that dividends and tax have a greater impact on capital structure and firm performance.   Implications/Originality/Value: Managers and owners of the firms must make sure that their profits are used for future investments rather than payment of debts to avoid bankruptcy.  

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