scholarly journals Capital structure, capital investment and profitability among Malaysian listed firms

2018 ◽  
Vol 7 (4.9) ◽  
pp. 14
Author(s):  
Yamunah Vaicondam ◽  
Ramakrishnan Ramakrishnan
Keyword(s):  
Capital Structure ◽  
Capital Investment ◽  
Moderating Effect ◽  
The Other ◽  
Capital Investments ◽  
Significant Positive Effect ◽  
Listed Firms ◽  
Empire Building ◽  
The Relationship ◽  
Positive Effect

Capital investments are referred as a critical managerial decision on firm's fixed asset for generating profitability. However, the empirical finding shows that not every capital investment has a significant positive effect on profitability. Literature indicates mixed results of examining the capital investment relationship with firm's profitability, which vary in respects to the debt structure. On the other hand, strong government reinforcement has pushed Malaysia up as one of the top ten countries with robust private capital investment in the year 2004. Since the capital investments are typically irreversible and hypothesized as profit generator, the first aim of this study is to examine the effect of the capital investment on the firm's profitability across firms and sectors. The second aim is to examine the moderating effect of capital structure on the relationship between capital investment and profitability across firms and sectors. This study utilized pooled ordinary least squares and fixed effect analysis across 708 non-financial Malaysian listed firms. The unbalanced datasets for the period 2001 to 2015 were employed to check the robustness of these results. This study suggested that capital investment has a strong significant positive effect on profitability measurements across Malaysian listed firms in non-financial sectors. On the other hand, the significant negative moderating effect of capital structure on the relationship between capital investment and return on capital across Malaysian listed firms reflected the perspective of empire building theory. In addition, the independent sample test engaged across sectors affirmed that moderating effect of capital structure are different across sectors. Thus, this study concluded the existence of moderating effect of capital structure on the relationship between capital investment and profitability. This study addressed the knowledge gap on the moderating effect of capital structure based on empire building theory.  

scholarly journals Does Customer-Based Reputation Lead Customers Not to Switch? Examining Moderating Influences in Hypermarkets

2019 ◽  
Vol 11 (2) ◽  
pp. 64
Author(s):  
Hao-Te Lu ◽  
Yi-Chou Wang
Keyword(s):  
Moderating Effect ◽  
Additional Research ◽  
The Other ◽  
Significant Positive Effect ◽  
Convenience Sample ◽  
Other Hand ◽  
The Impact ◽  
The Relationship ◽  
Positive Effect

Accumulating evidence underscores the importance of business reputation. Therefore, understanding the impact of reputation on customers is important and requires additional research. In this article, we attempted to understand the impact of customer-based reputation (CBR) on customers’ repatronage intentions across three hypermarkets of different sizes. We used switching inducement as a moderating variable to examine whether the relationship between CBR and repatronage intentions was moderated by inducements to switch. Inperson questionnaires/surveys were administered to a convenience sample to collect data from three different hypermarkets. In total, 1,099 questionnaires were collected and sorted for analysis. The results indicated that CBR had a significant positive effect on repatronage intentions in all three hypermarkets. On the other hand, a moderating effect was significant for only the smaller hypermarket, whereas there was no significantly interaction when large, multinational branded hypermarkets were considered.

scholarly journals Capital Structure and Firm Performance in Nigerian-Listed Companies

2016 ◽  
Vol 8 (3(J)) ◽  
pp. 54-74 ◽  
Author(s):  
Matthew Adeolu Abata ◽  
Stephen Oseko Migiro
Keyword(s):  
Firm Performance ◽  
Capital Structure ◽  
Negative Relationship ◽  
Debt Financing ◽  
Descriptive Statistics ◽  
The Other ◽  
Listed Firms ◽  
Business Failures ◽  
The Relationship

a number of business failures have not been reported in Nigeria arising from inability to payback nor does service debts .This paper empirically investigate the relationship between capital structure and firm performance in the Nigerian listed firms. A sample of 30listed firms out of a population of 173 were examined from 2005 to 2014 using multiple regression tools. Two hypotheses were formulated and tested using descriptive statistics and an econometric panel data technique to analyze the gathered data. An insignificantly negative correlation was found between financial leverage and ROA on one hand and a significantly negative relationship between debt/equity mix and ROE on the other hand. It is therefore recommended that firms should use long term liabilities to finance firm’s activities and mix debt/equity appropriately by ensuring that debt financing ratio is lower to enhance corporate performance and survival.

scholarly journals Impact of Capital Structure on Profitability:An empirical analysis of listed firms in India

2018 ◽  
Vol 7 (2) ◽  
pp. 1-6
Author(s):  
Atif Ghayas ◽  
Javaid Akhter
Keyword(s):  
Capital Structure ◽  
Stock Exchange ◽  
Short Term ◽  
Return On Equity ◽  
Listed Firms ◽  
Relationship Capital ◽  
The Impact ◽  
The Relationship ◽  
Positive Effect

This study aims to empirically examine and analyze the impact of capital structure decision on the firm’s profitability by using a sample of 35 Indian pharmaceutical companies listed on Bombay Stock Exchange (BSE) during the period of 5 years from 2012 to 2016. Regression Analysis is used to measure the extent and nature of the relationship. Capital structure variables used in the study are ratio of long-term debt to total assets (LDA), ratio of short-term debt to total assets (SDA) and ratio of Total debt to total assets (DA) while profitability has been measure by Return on Equity (ROE). Firms Size (SIZE)and Salesgrowth(GROW) are also used as control variables. Results reveal a positive effect of SDA and DA on ROE, while a weak-to-no effect was found of LDA on ROE.

scholarly journals Effect of Ownership Structure on Corporate Diversification of Listed Firms in Kenya

2019 ◽  
Vol 2 (5) ◽  
pp. 29-46
Author(s):  
Peninah Jepkogei Tanui ◽  
Josephat Cheboi Yegon ◽  
Ronald Bonuke
Keyword(s):  
Capital Structure ◽  
Institutional Ownership ◽  
Target Population ◽  
Foreign Ownership ◽  
Moderating Effect ◽  
Corporate Diversification ◽  
Listed Firms ◽  
Low Levels ◽  
The Relationship

Purpose - This paper aimed to examine the moderating role of capital structure in the relationship between institutional and foreign ownerships on corporate diversification of listed firms at the Nairobi Securities Exchange, Kenya. Design/Methodology - The target population comprised of all the 65 listed firms at Nairobi Securities Exchange in Kenya. However, the inclusion criteria were based on all firms listed at the NSE from 2003 to 2017. Findings - Capital structure significantly moderated the relationship between institutional ownership and corporate diversification. However, there was a statistically insignificant moderating effect of capital structure in the relationship between foreign ownership and corporate diversification. Practical Implications - As to increase diversification, listed firms are suggested to have low levels of capital structure and institutional ownership. Furthermore, low levels of foreign ownership and high capital structure is vital in attaining high diversification levels. Originality - The study contribution is the moderating effect of capital structure in institutional ownership - corporate diversification linkage.

scholarly journals Corporate governance and fraud: Evidence from China

2007 ◽  
Vol 4 (3) ◽  
pp. 139-145 ◽  
Author(s):  
Langnan Chen ◽  
Weibin Lin
Keyword(s):  
Corporate Governance ◽  
Capital Structure ◽  
Board Of Directors ◽  
Stock Markets ◽  
Financial Incentives ◽  
The Other ◽  
Corporate Fraud ◽  
Logit Regression ◽  
The Relationship ◽  
Positive Effect

This study investigates the relationship between corporate governance and corporate fraud by utilizing logit regression and by employing a sample of 176 firms listed in Chinese stock markets during the period from 2001 to 2005. The results s reveal that: (1) the proportion of independent members in board of directors is lower for firms experiencing corporate fraud than for no-fraud firms; (2) the firms with CEOs being the chairmen of board of directors are more likely to commit corporate fraud than the other firms; (3) the financial incentives to executives are greater for firms experiencing corporate fraud than for no-fraud firms; (4) capital structure has significant and positive effect on corporate fraud in China

scholarly journals The Effect of Perceived Overqualification on Job Crafting

2021 ◽  
Vol 34 (1) ◽  
pp. 105-126
Author(s):  
YoungSeok Park ◽  
YoungEun Shin
Keyword(s):  
Goal Orientation ◽  
Moderating Effect ◽  
Job Crafting ◽  
Achievement Goal Orientation ◽  
Significant Positive Effect ◽  
Job Requirements ◽  
Perceived Overqualification ◽  
The Relationship ◽  
Positive Effect

This study focused on job crafting for employees to solve the problem when they have the misfit between self and their jobs. Specifically, the effects of perceived overqualification, which is a misfit between job requirements and ability of employee, on job crafting were examined, and the moderating effect of achievement goal orientation was tested in the relationship between the two variables. As a result of a survey of 341 workers, perceived overqualification had a significant positive effect on job crafting. The approach goal orientation, more specifically, the performance-approach goal orientation had a moderating effect in the relationship between perceived overqualification and job crafting. The higher the performance-approach goal orientation, the stronger the correlation between perceived overqualification and job crafting. These results suggest job crafting is a series of behaviors for increasing performance rather than mastering abilities. Based on these results, the research implications, limitations, and follow-up studies were discussed.  

scholarly journals PENGARUH PROFITABILITAS DAN UKURAN PERUSAHAAN TERHADAP NILAI PERUSAHAAN DENGAN STRUKTUR MODAL SEBAGAI VARIABEL INTERVENING (STUDI PADA PERUSAHAAN ANEKA INDUSTRI YANG TERDAFTAR DI BEI 2012-2019)

2021 ◽  
Vol 15 (2) ◽  
pp. 15-28
Author(s):  
Fitri Diana Tri Anisa ◽  
Indra Siswanti
Keyword(s):  
Capital Structure ◽  
Firm Value ◽  
Stock Exchange ◽  
The Other ◽  
Direct Result ◽  
Company Size ◽  
Significant Positive Effect ◽  
Negative Effect ◽  
The Impact ◽  
Positive Effect

The purpose of the research is to obtain empirical evidence about the impact of profitability, company size , capital structure on firm value. And the other purpose of this research too is to determine the effect of profitability, company size on firm value mediated by capital structure.  The sample in this research is manufacturing company on Miscellaneous industry sector which listed in Indonesia Stock Exchange during the period of 2012 –2019. With using  purposive sampling data this research got  twelve companies as sample research. The source of the data of this research was conducted from annual report and financial report.This research is using quantitative approach with path analysis method and using SmartPLS 3.0 as analyisis tool.The result in this research has two kind of result,for direct result found that profitabilty has significant positive effect on firm value, company size has significant positive effect on firm value, capital structure has significant negative effect to firmvalue. And the result for indirect result are Capital structure is able to mediate profitability on firm value. But on the other hand capital structure is not able to mediate company size on firm value.

scholarly journals Pengaruh Return on Assets, Current Ratio dan Firm Size Terhadap Prediksi Kebangkrutan Dengan Struktur Modal sebagai Variabel Moderasi

2021 ◽  
Vol 7 (1) ◽  
pp. 90-99
Author(s):  
Mita Ayu Safitri ◽  
Indah Yuliana
Keyword(s):  
Capital Structure ◽  
Financial Distress ◽  
Sampling Method ◽  
Company Size ◽  
Significant Positive Effect ◽  
Return On Assets ◽  
Current Ratio ◽  
Chemical Companies ◽  
The Relationship ◽  
Positive Effect

This study aims to determine: the prediction results of bankruptcy in basic and chemical industry companies listed on the IDX for the 2016-2019 period and to determine the effect of return on assets, current ratio and company size on financial distress. Based on the purposive sampling method, there were 38 companies sampled. The method of analysis used is descriptive statistical method using Moderated Regression analysis tools. The results of this study indicate that the current ratio has a significant positive effect on financial distrees. Return on assets and company size have no effect on financial distrees. Capital structure is able to moderate the relationship between return on assets and financial distress. The capital structure is unable to moderate the relationship between current ratios and company size to financial distress in basic industrial and chemical companies. By using the Grover model, it can be that of the thirty eight samples all companies have no potential.

scholarly journals PENGARUH STRUKTUR MODAL, UKURAN PERUSAHAAN, LIKUIDITAS TERHADAP KINERJA KEUANGAN YANG DIMODERASI INFLASI

2019 ◽  
Vol 2 (2) ◽  
pp. 483
Author(s):  
Cindhy Dahlia
Keyword(s):  
Panel Data ◽  
Capital Structure ◽  
Financial Performance ◽  
Firm Size ◽  
Significant Positive Effect ◽  
Panel Data Regression ◽  
Data Regression ◽  
Negative Effect ◽  
The Relationship ◽  
Positive Effect

This study aims to obtain empirical evidence on the effect of capital structure, firm size, liquidity of financial performance and inflation as a moderating variable. The number of sample companies used in this study is 168 non financial companies period from 2012 to 2016. The results of this study indicate that on the capital structure have a significant negative effect of financial performance, firm size have a significant positive effect of financial performance, and liquidity have an non significant and positive effect of financial performance. Data were analyzed using panel data regression. Based on the analysis of regression panel data, we concluded that the inflation proved to have a pure moderating influence on the relationship between liquidity of the financial performance. Keyword: Capital Structure, Firm Size, Liquidity, Inflation, Financial performanceAbstrakPenelitian ini bertujuan untuk mendapatkan bukti empiris mengenai pengaruh struktur modal, ukuran perusahaan, likuiditas terhadap kinerja keuangan yang dimoderasi oleh inflasi. Jumlah sampel perusahaan yang digunakan dalam penelitian ini adalah 168 perusahaan non keuangan tahun 2012-2016. Hasil penelitian ini menunjukkan struktur modal berpengaruh negatif dan signifikan terhadap kinerja keuangan, ukuran perusahaan berpengaruh positif dan signifikan terhadap kinerja keuangan, likuiditas berpengaruh positif dan tidak signifikan terhadap kinerja keuangan. Data yang dianalisis menggunakan regresi data panel. Berdasarkan analisis regresi data panel, dapat disimpulkan bahwa inflasi sebagai variabel pure moderating antara pengaruh likuditas terhadap kinerja keuangan.Keyword: struktur modal, ukuran perusahaan, likuiditas, inflasi, kinerja keuangan

Kredit Bermasalah sebagai Pemoderasi Pengaruh Tingkat Penyaluran Kredit terhadap Profitabilitas

2020 ◽  
Vol 5 (1) ◽  
pp. 52
Author(s):  
Sukirno Sukirno
Keyword(s):  
Research Method ◽  
Quantitative Research ◽  
Stock Exchange ◽  
Survey Methods ◽  
Analytical Tool ◽  
Significant Positive Effect ◽  
Purposive Sampling ◽  
The Relationship ◽  
Positive Effect

Abstract This study aims to empirically challenge the moderation of Non-Performing Loans to the effect of Credit Distribution Rates on Profitability. The population of 81 bank companies listed on the Indonesia Stock Exchange in the period 2014-2018 and which met the criteria of the research sample (purposive sampling) were 22 companies. The research method uses survey methods with quantitative research approaches, the analytical tool used is moderation regression. This study concludes that the level of credit distribution has a significant positive effect on profitability and the existence of the problem loan variable is proven to be a moderating variable that weakens the relationship between the level of credit distribution and profitability.    

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