scholarly journals STRUKTUR MODAL DAN PROFITABILITAS PERUSAHAAN ANGGOTA HOLDING PT PUPUK INDONESIA (PERSERO)

2019 ◽  
Vol 23 (1) ◽  
pp. 37-46
Author(s):  
Rahmat Setiawan ◽  
Koko Sudiro
Keyword(s):  
Capital Structure ◽  
Short Term ◽  
Return On Assets ◽  
Financial Reports ◽  
Research Results ◽  
Holding Company

This research aims to investigate the effect of capital structure on profitability of the firms included in holding company PT Pupuk Indonesia (Persero). Capital structure is measured by 3 proxies, including Debt to Assets Ratio (DAR), Short-term Loan to Total Assets, and Long-term Loan to Total Assets. Profitability is measured by Return on Assets (ROA). Data were obtained from financial reports quarterly during period 2011-2015. The research results show that both DAR and Short-term Loan to Total Assets have negative significant effects on profitability. Long-term Loan to Total Assets does not have a significant effect on profitability.

scholarly journals Capital Structure and The Profitability of Listed Retail Firms

2018 ◽  
Vol 10 (1(J)) ◽  
pp. 171-181
Author(s):  
Jason Stephen Kasozi
Keyword(s):  
Capital Structure ◽  
Negative Relationship ◽  
Order Theory ◽  
Debt Financing ◽  
Retail Sector ◽  
Short Term ◽  
Return On Assets ◽  
Pecking Order Theory ◽  
Policy Interventions

The South African retail sector continues to experience a decline in sales and returns amidst growing external competition and a drop in consumer confidence stemming from the recent credit downgrades in the country. Yet, firms in this sector appear to maintain high debt to equity levels. This study investigated whether the capital structure practices of these firms influence their profitability. A Panel data methodology, using three regression estimators, is applied to a balanced sample of 16 retail firms listed on the Johannesburg Securities Exchange (JSE) during the period 2008-2016. The analysis estimates functions relating capital structure composition with the return on assets (ROA). Results reveal a statistically significant but negative relationship between all measures of debt (short-term, long-term, total debt) with profitability, suggesting a possible inclination towards the pecking order theory of financing behaviour, for listed retail firms. Additionally, retail firms are highly leveraged yet over 75% of this debt is short-term in nature. Policy interventions need to investigate the current restrictions on long-term debt financing which offers longerterm and affordable financing, to boost returns. While this study’s methodology differs slightly from earlier studies, it incorporates vital aspects from these studies, and simultaneously specifies a possible model fit.  This helps to capture unique but salient characteristics like the transitional effects of debt financing on firm profitability.  It therefore delivers some unique findings on the financing behaviour of retail firms that both in form policy change, while stimulating further research on the phenomenon. 

scholarly journals Debt Financing and Firm Performance: Evidence from an Emerging South-Asian Country

2019 ◽  
Vol 10 (1) ◽  
pp. 40
Author(s):  
Mohammad Mazibar Rahman ◽  
Umme Khadija Kakuli ◽  
Shahnaz Parvin ◽  
Ayrin Sultana
Keyword(s):  
Firm Performance ◽  
Capital Structure ◽  
Financial Performance ◽  
Negative Influence ◽  
Short Term ◽  
Return On Assets ◽  
Return On Equity ◽  
Firm Financial Performance ◽  
Total Debt

This paper aims to empirically investigate the impact of capital structure choice on the firm performance of the firms listed under the Dhaka Stock Exchange of Bangladesh. Multiple regression has been employed in this research to determine the relationship between the capital structure and the firm’s financial performance. Three ratios of financial performance, i.e., return on assets, return on equity, and gross margin, have been used as a sample of non-financial Bangladeshi companies, selected from 2010 to 2015. The study records numerous findings. First, the result shows a significant negative influence of long-term debt (LTD) and total debt (TTD) on firm financial performance measured by return on assets (ROA), but no significant relationship is found between short-term debt (STD) and this measure of firm’s financial performance. Moreover, the research found that there is no significant effect of short-term debt, long-term debt and total debt on the firm financial performance measured by return on equity (ROE). Finally, the result shows that a significant negative influence of short-term debt and total debt on firm performance measured by GM, but no significant relationship was found between long-term debt and financial performance. In general terms, the results of this study may suggest that capital structure has a negative influence on firms’ financial performance in Bangladesh.

scholarly journals Effect of Capital Structure on the Profitability of Listed Insurance Firms in Nigeria

2019 ◽  
pp. 36-45
Keyword(s):  
Capital Structure ◽  
Least Square ◽  
Short Term ◽  
Financial Reports ◽  
Ordinary Least Square ◽  
Least Square Regression ◽  
Multiple Regression Technique ◽  
Insurance Firms ◽  
Ordinary Least Square Regression

This study examined the effect of capital structure on profitability of listed insurance firms in Nigeria for the period 2013-2017 The study used correlation research design. The source of data which were collected from the published annual financial reports of studies listed insurance firms in Nigeria. The population of the study comprised of the 28 listed insurance firms. The sample size was fifteen (15) listed insurance firms in Nigeria. The data collected were analyzed with the aid of OLS multiple regression technique. Using 75 firm-year paneled observations, the result of the ordinary least square regression showed that short-term debt has a negative and significant effect on the profitability of listed insurance firms in Nigeria. In addition, long-term debt has a positive and significant effect on profitability. Finally, premium growth has positively significant effect on profitability of listed insurance firms. Based on the findings, the study recommends that the management of listed insurance firms should strive towards having optimum capital structure by increasing their equity level and reducing dependence on debts so as to avoid being cash strapped and debt ridden.

scholarly journals Struktur Pendanaan dan Profitabilitas: Studi pada Perusahaan Non-Keuangan yang Listing di Bursa Efek Indonesia

2019 ◽  
Vol 1 (1) ◽  
pp. 55-66
Author(s):  
Irene Rini Demi Pangestuti ◽  
Dinar Nur Septiyanto
Keyword(s):  
Capital Structure ◽  
Random Sampling ◽  
Stock Exchange ◽  
Sampling Technique ◽  
Short Term ◽  
Return On Assets ◽  
Negative Effect ◽  
Equity Ratio ◽  
Positive Effect

Purpose- The study was conducted to examine the effect of capital structure on profitability. Variables of the capital structure are Long-term Debt to total assets (LTD), Short-term Debt to total assets (STD) and Debt to Equity Ratio (DER) while profitability is proxied by Return on Assets (ROA. Research is conducted on all Non-Financial companies listed on the Indonesia Stock Exchange (IDX) in the period 2014-2016. Methods- Use the Purposive Random Sampling technique to take samples. Samples taken from Bloomberg. The sample used amounted to 175 companies using multiple regression analysis SPSS program assistance. Finding- The results of the study note that LTD and STD have a significant negative effect on ROA. DER has not a significant positive effect on ROA.

Effect of Capital Structure on the Profitability of Listed Insurance Firms in Nigeria

2019 ◽  
Vol 1 (2) ◽  
pp. 36-45
Author(s):  
Abdul Kerim ◽  
John Alaji ◽  
Idachaba Odekina Innocent
Keyword(s):  
Capital Structure ◽  
Jel Classification ◽  
Least Square ◽  
Short Term ◽  
Financial Reports ◽  
Ordinary Least Square ◽  
Multiple Regression Technique ◽  
Insurance Firms ◽  
Ordinary Least Square Regression

This study examined the effect of capital structure on profitability of listed insurance firms in Nigeria for the period 2013-2017 The study used correlation research design. The source of data which were collected from the published annual financial reports of studies listed insurance firms in Nigeria. The population of the study comprised of the 28 listed insurance firms. The sample size was fifteen (15) listed insurance firms in Nigeria. The data collected were analyzed with the aid of OLS multiple regression technique. Using 75 firm-year paneled observations, the result of the ordinary least square regression showed that short-term debt has a negative and significant effect on the profitability of listed insurance firms in Nigeria. In addition, long-term debt has a positive and significant effect on profitability. Finally, premium growth has positively significant effect on profitability of listed insurance firms.  Based on the findings, the study recommends that the management of listed insurance firms should strive towards having optimum capital structure by increasing their equity level and reducing dependence on debts so as to avoid being cash strapped and debt ridden. JEL classification: C88, G22, G24, G29

scholarly journals PENGARUH STRUKTUR MODAL TERHADAP PROFITABILITAS EMITEN INDEKS SAHAM SYARIAH INDONESIA

2019 ◽  
Vol 2 (1) ◽  
pp. 39
Author(s):  
Prasojo Prasojo
Keyword(s):  
Capital Structure ◽  
Fixed Effect ◽  
Statistical Testing ◽  
Stock Index ◽  
Short Term ◽  
Return On Assets ◽  
Return On Equity ◽  
Equity Ratio ◽  
The Capital Structure

AbstractThis study aims to examine the capital structure for the profitability of companies into the category of the Indonesian Syariah Stock Index (ISSI). This study uses a sample of 149 companies from 2011 to 2016 which are consistently included in the ISSI list. Return on Assets (ROA), Return on Equity (ROE) as the dependent variable. While Debt to Equity Ratio (DER), Short Term Debt (STD) and Long Term Debt (LTD). Statistical testing using panel data regression with the ramdom fixed effect method. The results of the study are the capital structure that is processed with DAR variable has a significant negative effect on the profitability of the company by measuring ROA and ROE, while the capital structure proxied by STD has a significant positive effect on the profitability of the company by measuring ROA and ROE AbstrakPenelitian ini bertujuan untuk mengkaji hubungan struktur modal terhadap profitabilitas perusahaan yang termasuk dalam kategori Indek Saham Syariah Indonesia (ISSI). Penelitian ini menggunakan sampel sebanyak 149 perusahaan dari tahun 2011 sampai 2016 yang secara konsisten masuk dalam daftar ISSI. Return on Assets (ROA), Return on Equity (ROE) sebagai variabel dependen. Sedangakan Debt to Equity Ratio (DER), Short Term Debt (STD) dan Long Term Debt (LTD). Pengujian statistik dengan menggunakan regresi data panel dengan metode ramdom fixed effect. Hasil dari penelitian adalah struktur modal yang di proksikan dengan variabel DAR berpengaruh negatif signifikan terhadap profitabilitas perusahaan dengan pengukuran ROA dan ROE, sedangkan struktur modal yang diproksikan dengan STD berpengaruh positif signifikan terhadap profitabilitas perusahaan dengan pengukuran ROA dan ROE  

scholarly journals Capital Structure and The Profitability of Listed Retail Firms

2018 ◽  
Vol 10 (1) ◽  
pp. 171
Author(s):  
Jason Stephen Kasozi
Keyword(s):  
Capital Structure ◽  
Negative Relationship ◽  
Order Theory ◽  
Debt Financing ◽  
Retail Sector ◽  
Short Term ◽  
Return On Assets ◽  
Pecking Order Theory ◽  
Policy Interventions

The South African retail sector continues to experience a decline in sales and returns amidst growing external competition and a drop in consumer confidence stemming from the recent credit downgrades in the country. Yet, firms in this sector appear to maintain high debt to equity levels. This study investigated whether the capital structure practices of these firms influence their profitability. A Panel data methodology, using three regression estimators, is applied to a balanced sample of 16 retail firms listed on the Johannesburg Securities Exchange (JSE) during the period 2008-2016. The analysis estimates functions relating capital structure composition with the return on assets (ROA). Results reveal a statistically significant but negative relationship between all measures of debt (short-term, long-term, total debt) with profitability, suggesting a possible inclination towards the pecking order theory of financing behaviour, for listed retail firms. Additionally, retail firms are highly leveraged yet over 75% of this debt is short-term in nature. Policy interventions need to investigate the current restrictions on long-term debt financing which offers longerterm and affordable financing, to boost returns. While this study’s methodology differs slightly from earlier studies, it incorporates vital aspects from these studies, and simultaneously specifies a possible model fit.  This helps to capture unique but salient characteristics like the transitional effects of debt financing on firm profitability.  It therefore delivers some unique findings on the financing behaviour of retail firms that both in form policy change, while stimulating further research on the phenomenon. 

scholarly journals Capital Structure and Firm’s Profitability: Evidence From Listed Consumer Goods Sector in Nigeria

2020 ◽  
Vol 9 (2) ◽  
pp. 50
Author(s):  
Udobi-Owoloja, P. I. ◽  
Gbajumo-Sheriff, M.A. ◽  
Umoru, B. ◽  
Babatunde, S.A ◽  
Ilimezekhe, D
Keyword(s):  
Capital Structure ◽  
Consumer Goods ◽  
Stock Exchange ◽  
Total Asset ◽  
Short Term ◽  
Interest Payment ◽  
Financial Reports ◽  
Listed Firms ◽  
The Impact

This study investigated the impact of capital structure on profitability of consumer goods firms in Nigerian for a period of eight years (2011-2018). Data of ten (10) randomly selected listed firms of the Nigeria Stock Exchange were derived from the firms’ published financial reports for the period covered. The panel regression results revealed that Debt to Asset Ratio(DAR) is positively significant on Return On Asset(ROA) (Proxy for profitability),while other proxies of capital structure shows that Debt to Equity(DER), Liquidity Ratio(LIQ), are not statistically significant, Short Term Debt to Total Asset Ratio (SDTA) shows a negative connection, Firm Size (FS) has a weak correlation with profit and Long Term Debt to Total Asset Ratio (LDTA) do not influence firms’ profitability of the consumer goods sector of Nigeria economy. In conclusion, capital structure influences the profitability of consumer goods sector of Nigerian Stock Exchange. It was recommended that firms in that sector should leverage on debt financing to boost their earnings as interest payment on debt is tax deductible.

scholarly journals Pengaruh Struktur Modal terhadap Kinerja Perusahaan Pertanian yang terdaftar di Indeks Saham Syariah Indonesia

2019 ◽  
Vol 2 (2) ◽  
pp. 221-237
Author(s):  
Suradi Suradi ◽  
Rusdiawan Rusdiawan
Keyword(s):  
Capital Structure ◽  
Market Segmentation ◽  
Stock Index ◽  
Company Performance ◽  
Short Term ◽  
Return On Assets ◽  
Return On Equity ◽  
Net Profit ◽  
Short And Long Term

This study discusses the effect of capital structure on the performance of agricultural companies listed in the Indonesian Islamic stock index. This study aims to determine how the influence of short-term debt and long-term debt (Short-term Debt and Longterm Debt) on company performance (Return on Assets, Return on Equity, Net Profit Margin). The results showed that long-term debt and short-term debt affect the company's performance, but the percentage of short-term debt and long-term debt can not be used as a measure to assess the company's performance is good or bad, because there are companies that have short and long-term debt but it is able to produce a fairly good performance, and vice versa when the short-term debt and long-term debt of the company has a high percentage does not guarantee the company will perform well. One of the things that makes the percentage of the company's capital structure does not significantly affect company performance is market share. This happened because at that time the market segmentation did not support the sale of the company's products, so the company could suffer losses (Profit Loss).

scholarly journals The Effects of Capital Structure on Banks’ Performance, the Ugandan Perspective

2019 ◽  
Vol 67 (3) ◽  
pp. 853-868
Author(s):  
Isah Serwadda
Keyword(s):  
Capital Structure ◽  
Positive Relationship ◽  
Negative Relationship ◽  
Bank Performance ◽  
Short Term ◽  
Return On Assets ◽  
Total Debt ◽  
Net Interest Margin ◽  
Interest Margin

The paper aims to investigate the effects of capital structure on banks’ performance on Ugandan banks for a ten years period, 2006–2015 with a sample of 20 commercial banks. The study employs four performance indicators of return on equity, return on assets, net interest margin and cost to income ratio to determine bank performance. Panel regression models are used to determine the effects of capital structure on bank performance. Independent variables are sub‑divided into capital structure variables namely; long‑term debt to total assets, short‑term debt to total assets and total debt ratio and then control variables are bank size and tangibility of assets. Results portray that there is a positive relationship between capital structure variables and bank performance. It’s between long‑term debts, total debt with net interest margin. There is also a positive relationship between total debt and return on assets. It is still the same between total debt and returns on equity. However, there is a negative relationship between short‑term debt and return on assets. The results also signify a positive relationship between bank size and net interest margin. It is still the same between bank size and returns on equity plus return on assets. There is a negative relationship between the tangibility of assets and net interest margin. It is also the same with return on equity. The findings propose that profitable banks rely more on debt financing as their financing option. This is advanced by the fact that approximately 68 % of total assets are represented by short‑term debts for Uganda’s commercial banks. This further implies that Ugandan banks largely depend on short‑term debt financing for their business operations compared to long‑term debt. Hence the study recommends that executive banking management teams plus policymakers should design prudent financing decisions aimed at reducing overreliance on debts to yield optimal capital structure levels. This will enable banks to remain at the top of the profitability game competitively in the banking industry.

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