Profits, Firm Size, Growth Opportunities and Capital Structure: An Empirical Test

The purpose of this research to analyze the influence of firm size, liquidity, growth opportunities, tangibility asset, and business risk to the capital structure of listed food and beverage manufacturing companies in Indonesia and Vietnam Stock Exchange from 2010 to 2016. The result shows that the fixed effects model should be appropriate for this study as compared to the random effect model. Capital structure significantly differences between the two countries. Firm size has a positive but insignificant influence on the capital structure in Indonesia, whereas it has a positive and a significant influence on the capital structure in Vietnam. Liquidity has a negative and significant influence on the capital structure both in Indonesia and Vietnam. Growth opportunities have a negative but insignificant influence on the capital structure both in Indonesia and Vietnam. Asset tangibility has a positive but insignificant influence on the capital structure in Indonesia, but it has the negative but insignificant influence on the capital structure in Vietnam. Ultimately, the business risk has a negative and significant influence on the capital structure in Indonesia but has a positive and insignificant influence on the capital structure in Vietnam.

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The impact of capital structure and certain firm specific variables on the value of the firm: Empirical evidence from Kuwait

Corporate Ownership and Control ◽

10.22495/cocv13i1c10p6 ◽

2015 ◽

Vol 13 (1) ◽

pp. 1191-1200

Author(s):

Ahmad Mohammad Obeid Gharaibeh ◽

Adel Mohammed Sarea

Keyword(s):

Capital Structure ◽

Stock Exchange ◽

Influential Factor ◽

Annual Reports ◽

Growth Opportunities ◽

Data Set ◽

Explanatory Variables ◽

Size Growth ◽

One Year ◽

The Impact

The main objective of this study is to empirically examine the impact of leverage and certain firm-characteristics that are believed to have significant effects on the decision to use debt and on the value of the firm. The sample is composed of 48 companies listed in the Kuwait Stock Exchange (KSE) representing four different sectors. The study uses actual and historical panel data set obtained from the published annual reports of individual firms in addition to the publications of KSE. The study was accomplished using 8 years of data with a total of 239 observations representing the study period 2006-2013. The study uses descriptive statistics, correlation, and multiple-regression analyses to examine the impact of explanatory variables on the value of the firm. The study findings lead to the conclusion that capital structure (leveraging) is the most influential factor on firm’s value. Business risk, previous year’s value (one-year lagged ROA), dividends payout ratio, size, growth opportunities and liquidity of the firm are found to have significant influence on the firm’s value in Model 1 (where ROA is used as a proxy for the value of the firm). In model 2 (i.e., where ROE is used as a proxy of the firm’s value), the findings reveal that capital structure (leveraging); firm’s size, growth opportunities and liquidity of the firm are significant influential of the firm’s value. The study is valuable to academicians, finance managers, policy makers and other stakeholders as it fills the gap of literature by providing up-to-date evidence of the impact of capital structure and other firm specific variables on the value of the firm in Kuwait.

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FACTOR-FAKTOR PENENTU STRUKTUR MODAL

DiE: Jurnal Ilmu Ekonomi dan Manajemen ◽

10.30996/die.v11i01.3403 ◽

2020 ◽

Vol 11 (01) ◽

Author(s):

Sawal Sartono ◽

Tri Ratnawati

Keyword(s):

Literature Review ◽

Capital Structure ◽

Company Size ◽

Tax Rates ◽

Firm Age ◽

Growth Opportunities ◽

Corporate Tax ◽

Determining Factors ◽

Tax Shields ◽

Size Growth

In this article, a literature review on the determinants of capital structure is presented from research conducted, both in Indonesia and internationally, in recent years.Furthermore, the results of the review will conclude the factors that determine the capitalstructure that generally affects the company's leverage. From the results of the review, itis known that the variables that influence the capital structure are; Corporate tax rates,debt costs, dividend payout ratios, firm age, company size, growth opportunities,liquidity, non-tax shields, profitability, tangibility Keywords: Capital Structure; Leverage; Determining Factors

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The Influence of Firm’s Size, Growth, and Profitability on Firm Value with Capital Structure as the Mediator: A Study on the Agricultural Firms Listed in the Indonesian Stock Exchange

International Journal of Economics and Finance ◽

10.5539/ijef.v9n8p103 ◽

2017 ◽

Vol 9 (8) ◽

pp. 103 ◽

Cited By ~ 3

Author(s):

Purwohandoko

Keyword(s):

Capital Structure ◽

Firm Size ◽

Firm Value ◽

Firm Growth ◽

Sampling Method ◽

Stock Exchange ◽

Corporate Value ◽

Purposive Sampling ◽

Size Growth ◽

The Capital Structure

This study aims to examine the effect of size, growth, and profitability on corporate value with capital structure as a mediator.This study was conducted on agricultural companies listed on the Indonesia Stock Exchange from 2011 to 2014. The population of this study is an agricultural company listed on the Indonesia Stock Exchange period 2011-2014 with a sample of 14 companies, using purposive sampling method. Data were analyzed using smartpal, because this research adds capital structure as mediator variable.The results of this study indicate that firm size and firm growth have no effect on capital structure. Profitability negatively affects the capital structure.

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influence of capital structure, its size, growth of the value of the company with its profitability as variable intervening the company LQ45 are listed in Indonesia stock exchange

International journal of business, economics & management ◽

10.21744/ijbem.v5n1.1805 ◽

2021 ◽

Vol 4 (4) ◽

pp. 487-493

Author(s):

Mgs. Abdul Hakim Fahmi ◽

Mohamad Adam ◽

Marlina Widiyanti ◽

Isnurhadi Isnurhadi

Keyword(s):

Adverse Effect ◽

Capital Structure ◽

Firm Size ◽

Firm Value ◽

Firm Growth ◽

Stock Exchange ◽

Significant Positive Effect ◽

Size Growth ◽

Size Firm ◽

Positive Effect

This study aimed to determine the effect of capital structure, firm size, firm growth on firm value with profitability as an intervening variable in LQ45 companies listed on the Indonesia Stock Exchange in 2018-2020. The sample used is 33 LQ45 companies during the period 2018-2020. This research uses multiple linear regression and path analysis. The results showed that the capital structure had a significant adverse effect on profitability and firm value. Meanwhile, firm size and growth do not significantly affect profitability and firm value. Profitability has a significant positive effect on firm value. Indirectly, capital structure affects firm value through profitability, while firm size and growth do not indirectly affect firm value.

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FAKTOR INTERNAL PERUSAHAAN YANG MEMPENGARUHI KEBIJAKAN LINDUNG NILAI

Jurnal Riset Akuntansi Kontemporer - Vol 13 No 2 (2021): October Edition ◽

10.23969/jrak.v11i1.1871 ◽

2019 ◽

Vol 11 (1) ◽

pp. 33-40

Author(s):

Ranny Junia Setiawan

Keyword(s):

Firm Size ◽

Financial Distress ◽

Foreign Currency ◽

Growth Opportunities ◽

Leverage Ratio ◽

Analysis Technique ◽

Hedging Policy ◽

Size Growth ◽

Negative Effect ◽

Positive Effect

Hedging is used to protect the value of a company’s assets or liabilities from exposure to fluctuations in the value of foreign currency. This study aims to investigate the conditions and influence of firm size, growth opportunities, leverage ratio, and financial distress either simultaneously or partially to the hedge policy of BUMN listed in the IDX period of 2013-2016. The sample in this study was chosen based on purposive sampling method, obtained from 16 BUMN companies with research period from 2013-2016. Data analysis technique in this research is descriptive statistical analysis and logistic regression analysis. The results of this study indicate that firm size, growth opportunities, leverage, and financial distress simultaneously have a significant effect on hedging policy. Partially, firm size and financial distress have a significant positive effect on hedging policy, leverage has a significant negative effect on hedging policy, while growth opportunity has a positive effect not significant to hedging policy.

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PENENTU STRUKTUR MODAL DAN PENGARUH STRUKTUR MODAL TERHADAP NILAI PERUSAHAAN

Jurnal Apresiasi Ekonomi ◽

10.31846/jae.v3i3.167 ◽

2019 ◽

Vol 3 (3) ◽

pp. 129-139

Author(s):

Ella Novia Galin ◽

Idamiharti Idamiharti

Keyword(s):

Capital Structure ◽

Firm Size ◽

Firm Value ◽

Sampling Method ◽

Stock Exchange ◽

Testing Hypotheses ◽

Tax Shield ◽

Transportation Sector ◽

Size Growth ◽

Debt Tax Shield

The purposes of this study were to examine the influence of profitability, firm size, growth, asset structure, non debt tax shield on the capital structure and the influence of capital structure on the firm value. The sample used in this research are infrastructure, utility and transportation sector that listed in Indonesia Stock Exchange (ISE) period 2010-2013, which is choosing by purposive sampling method. Testing hypotheses were tested using multiple linear regression. The results showed that only profitability has significant effect on capital structure. Beside that, capital structure also has significant effect on firm value. Keywords : Capital Structure, Firm Value, Profitability, Firm Size, Growth, Asset Structure, Non Debt Tax Shield

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Do Firms' Cash Holdings Differ Between Asian Countries? Theory and Empirical Validation

Business and Economic Research ◽

10.5296/ber.v7i1.9293 ◽

2017 ◽

Vol 7 (1) ◽

pp. 298 ◽

Cited By ~ 1

Author(s):

Ben Said Hatem

Keyword(s):

Capital Structure ◽

Firm Size ◽

Cash Holdings ◽

Descriptive Statistics ◽

Empirical Validation ◽

Asian Countries ◽

Growth Opportunities ◽

Two Measures ◽

Profitability Ratios ◽

Japan And China

This work identifies the factors that explain firms cash holdings (Opler, Pinkowitz, Stulz, and Williamson, 1999). Empirical validation was calculated on two Asian countries: Chine and Japan. To measure of firms cash holdings, we use, alternatively, two measures: Cash ratio approximated as the ratio of cash and equivalents of cash to total assets, and Quick ratio calculated as cash and equivalents of cash to current liabilities. Our samples contain 119 firms from each country for a period of 8 years from 2006 to 2013. Descriptive statistics show that firms from Chine have higher debt and profitability ratios. However, firms in Japan are older than firms in Chine with a mean age of 38,357 years with a minimum of 4 years and a maximum of 121 years. the results report many differences in cash holdings policy between the two countries. Contrary to our hypothesis, firms in China that have higher capital structure ratios have more cash. We concluded to a difference in the effect of firm size and number of employees in the two countries. Older firms in Japan have more cash. Finally, we concluded to a negative and a statistically significant effect of growth opportunities for firms in Japan and China. Firm performance positively influence cash in the two countries.

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ANALISIS PENGARUH WORKING CAPITAL TURNOVER, FIRM SIZE, GROWTH OPPORTUNITY DAN PROFITABILITAS TERHADAP STRUKTUR MODAL PERUSAHAAN PT FAST FOOD INDONESIA TBK

Jurnal Ecoment Global ◽

10.35908/jeg.v4i2.752 ◽

2019 ◽

Vol 4 (2) ◽

pp. 17

Author(s):

Emma Lilianti ◽

Reva Maria Valianti

Keyword(s):

Capital Structure ◽

Firm Size ◽

Fast Food ◽

Working Capital ◽

Growth Opportunity ◽

Asset Value ◽

Drastic Increase ◽

Size Growth ◽

Quantitative Descriptive ◽

Descriptive Method

This research purpose to analyze the effect of Working Capital Turnover, Firm Size, Growth Opportunity, Profitability on the Capital Structure of the Company PT Fast Food Indonesia Tbk. The year of observation for 5 years is 2014 at 2018, with the object of PT. Fast Food Indonesia Tbk. The method of analysis uses quantitative descriptive method. The results showed that the working capital turnover of the company> 3 times the efficiency of the company's working capital turnover in 2014 d. 2018 efficiency. The size of a good company can be seen from the company's total asset value quite well. Total assets of PT. Fast Food continues to experience a significant increase every year. Growth opportunity PT. Fast Food has decreased every year even though sales have increased. This shows the low growth opportunity of the company can mean that the company does not have flexibility in investing optimally because the company manager will take action to transfer wealth from creditors to<br />investors, so that the company is expected to have low debt. The level of profitability can be measured from the level of the company's fluctuating profits and significantly increased in 2018. In 2014 to 2015 decreased by 4.7%, then in 2016 increased by 3.9% and in 2016 decreased by 1.37% and in 2018 experienced a drastic increase in profit of 5.55%.<br />Keywords: Working Capital Turnover, Firm Size, Growth Opportunity, Profitability, Capital Structure

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DETERMINAN STRUKTUR MODAL BADAN USAHA MILIK NEGARA DI INDONESIA

JEMBATAN ◽

10.29259/jmbt.v14i2.5295 ◽

2018 ◽

Vol 14 (2) ◽

pp. 91-102

Author(s):

Mizan Ahmad Zarkasih ◽

Mohammad Adam ◽

Reza Ghasarma

Keyword(s):

Capital Structure ◽

Firm Size ◽

Linear Regression Analysis ◽

Sampling Technique ◽

Multiple Linear Regression Analysis ◽

Business Risk ◽

Investment Opportunity ◽

Growth Opportunity ◽

Investment Opportunity Set ◽

Size Growth

The objectives of this research are to examine the effect of Firm Size, Growth Opportunity, Business Risk and Investment Opportunity Set influence simultaneously and partially on Capital Structure.Research conducted at the State-Owned Enterprises that listed on the Bursa Efek Indonesia period 2011-2015. The research population was 20 companies, with the sample of 17 companies with sampling using purposive sampling technique. The analytical method used is the factor analysis method and multiple linear regression analysis, which perviously tested with the classical assumption. The results showed that the Firms Size, Growth Opportunity, Business Risk, and the Investment Opportunity Set influence simultaneous on the Capital Structure.The research also revealed that, Firm Size influence positive significant, Growth Opportunity and Business Risk has no significant effect on Capital Structure, and Investment Opportunity Set influence negative significant on the Capital Structure. On the other hand, R-Square value amnounted at 57,6%, it’s mean that 57,6% movement of Capital Structure can be predicted from the movement of the four independent variables. Keyword : Capital Structure, Business Risk, Investment Opportunity Set

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