scholarly journals AN EVALUATION OF THE IMPACT OF CAPITAL STRUCTURE ON FIRMS' PERFORMANCE : A QUANTITATIVE STUDY OF SELECTED NON-FINANCIAL FIRMS LISTED ON THE INDONESIA STOCK EXCHANGE DURING THE PERIOD 2005-2012

2018 ◽  
Vol 1 (1) ◽  
pp. 88-105
Author(s):  
Argeta Argeta ◽  
Niken S. Putri
Keyword(s):  
Capital Structure ◽  
Stock Exchange ◽  
Random Effect ◽  
Fixed Effect Model ◽  
Transportation Industry ◽  
Financial Firms ◽  
Financial Position ◽  
Industry Effect ◽  
Effect Model ◽  
The Impact

Capital structure is an important element for every company and directly affects the firms' performance and financial position. This study aims to evaluate the impact of capital structure on the performance of non-financial firms listed on the Indonesia Stock Exchange during the period 2005-2012. The data consist of 150 publicly listed non-financial firms from 8 non-financial industries in Indonesia. Panel data for the selected firms were generated and analyzed using both fixed effect model and random effect. The result shows that capital structure (DAR) has a significant impact on firms' performance (ROA, ROE, and GPM) and has no significant impact of capital structure on firms' performance caused by industry differences. Infrastructure, utilities, and transportation industry has the strongest industry effect on the impact of capital structure on firms' performance.

scholarly journals The Impact of Financial Distress on Trade Credit in Indonesian Stock Exchange

2019 ◽  
Author(s):  
Angelica Marcia T Marcia T ◽  
Bernardus Y. Nugroho
Keyword(s):  
Financial Distress ◽  
Trade Credit ◽  
Stock Exchange ◽  
Random Effect ◽  
Fixed Effect Model ◽  
Estimation Model ◽  
Short Term ◽  
Financial Firms ◽  
The Cost ◽  
The Impact

This study examines the use of trade credits by firms that are in a state of financial distress. Trade credit is short-term financing that can be useful for firms in financial distress. The purpose of this study is to analyze the effect of financial distress on trade credit. The study sample was taken from non-financial firms listed on the Indonesian Stock Exchange (IDX) from 2007 to 2016. The research method is panel data regression by using the estimation model of the fixed-effect model and random effect. This study found that firms in financial distress tend to increase the use of trade credit. This is reflected from the results of research showing the positive and significant coefficients on the variable financial distress on the ratio of trade payable to the cost of goods sold and the ratio of trade payable to equity. Based on the results of the study it can be explained that firms that are in a state of financial distress have a larger current liability, its source from short-term financing.

scholarly journals Impact of Ownership Structure on Earnings Management: Evidence from Pakistan

2018 ◽  
Vol 1 (1) ◽  
pp. 51-58
Author(s):  
Amir Rafique ◽  
Mouhammad Hanif Akhtar ◽  
Muhammad Umer Quddoos ◽  
Sher Dil Khan Jadoon
Keyword(s):  
Earnings Management ◽  
Ownership Structure ◽  
Stock Exchange ◽  
Random Effect ◽  
Random Effect Model ◽  
Institutional Ownership ◽  
Foreign Ownership ◽  
Financial Firms ◽  
Effect Model ◽  
The Impact

The aim of the current study is to examine the impact of ownership structure on earnings management by using three aspects of ownership i.e. managerial, institutional and foreign. The sample consists of non-financial firms included in KSE-100 index of Pakistan Stock Exchange (PSX). The modified Jones model is used to calculate earnings management and random effect model regression is applied to test the impact of ownership structure on earnings management. The findings reveal that firms with high managerial and foreign ownership, engage more in earnings management. However, analysis reveal insignificant relationship between institutional ownership and earnings management.

scholarly journals Empirical Investigation of Symmetric and Asymmetric Target Adjustment Models: Capital Structure of Non-Financial Firms in Jordan

2017 ◽  
Vol 9 (3) ◽  
pp. 133 ◽  
Author(s):  
Bashar K. Abu Khalaf
Keyword(s):  
Capital Structure ◽  
Stock Exchange ◽  
Interaction Model ◽  
Firm Characteristics ◽  
Leverage Ratio ◽  
Financial Firms ◽  
Large Size ◽  
Amman Stock Exchange ◽  
Target Leverage ◽  
The Impact

The different capital structure theories propose the possible asymmetric behavior of capital structure. Thus, this paper empirically investigates whether non-financial Jordanian firms follow symmetrical or asymmetrical adjustment model. Then, an interaction model with the size and profitability (firm characteristics) investigated the impact of low/high profit and small/large size on the adjustment of leverage towards the target leverage ratio. This paper covered the period of 14 years (2002-2015) for a total of 110 companies listed on Amman Stock Exchange (75 industrial and 35 services). Results indicate that although Jordanian firms seek a target leverage ratio, their adjustment towards that target is Asymmetrical and high profitable and large companies tend to adjust faster than low profitable and small size companies.

scholarly journals FAKTOR-FAKTOR YANG MEMPENGARUHI CASH HOLDINGS PERUSAHAAN DI BURSA EFEK INDONESIA

2017 ◽  
Vol 21 (3) ◽  
pp. 336
Author(s):  
Suherman Suherman
Keyword(s):  
Cash Flow ◽  
Stock Exchange ◽  
Cash Holdings ◽  
Fixed Effect Model ◽  
Sales Growth ◽  
Financial Firms ◽  
Positive Effects ◽  
Cash Conversion Cycle ◽  
Effect Model ◽  
Negative Effect

The purpose of this study is to examine determinants of cash holdings of non-financial firms listed on Indonesia Stock Exchange between 2012 and 2015. Sample of this research covers 328 firms (1312 observations). This research employs fixed effect model. The results show that net working capital and sales growth have positive effects on cash holding, while firm size has negative effect. Cash flow, cash flow variability, cash conversion cycle, liquidity, leverage do not affect the cash holdings.

scholarly journals EFFECT OF CREDIT RATING ON CAPITAL STRUCTURE: A STUDY ON NON-FINANCIAL FIRMS IN PAKISTAN

2012 ◽  
Vol 12 (1) ◽  
Author(s):  
Keyword(s):  
Capital Structure ◽  
Credit Rating ◽  
Stock Exchange ◽  
Credit Ratings ◽  
Least Square ◽  
Statistical Tool ◽  
Ordinary Least Square ◽  
Optimal Capital Structure ◽  
Financial Firms ◽  
The Impact

Purpose- Aim of this study was to investigate whether the credit rating is an important determinant other than the firm's characteristic to obtain optimal capital structure focusing on the research hypothesis that the firms with higher credit along with the other factors (FTOA, ROA and Size) tend to have more debt in their capital structure of firms rated by P?CR? and Karachi Stock Exchange (KSE). Methodology/Sample- For this research, sample size of 48 observations (3 years data of 16 firms) was taken on the basis of convenience sampling. Results obtained by using Ordinary Least Square Model (OLS) as statistical tool to test the hypothesis Findings- Analysis clearly suggested that credit ratings do have an impact on firm's capital structure. It was concluded that firms with higher credit ratings along with other factors (FTOA, ROA and Size) do not tend to have more debt in their capital structure. Implications- Outcomes of this research might help investors, debtors and other stakeholders of the firms (rated by PACRA) to understand the impact of credit rating on firm's debt ratio and the overall dynamics and mechanism of capital structure.

scholarly journals Cash flows, capital structure and shareholder value: Empirical evidence from Amman stock exchange

Accounting ◽  
2021 ◽  
pp. 513-524 ◽  
Author(s):  
Fawzi A. Al Sawalqa
Keyword(s):  
Capital Structure ◽  
Significant Relationship ◽  
Stock Exchange ◽  
Shareholder Value ◽  
Fixed Effect Model ◽  
Cash Flows ◽  
Insurance Companies ◽  
Investment Projects ◽  
Effect Model ◽  
Amman Stock Exchange

The current study links the information contents of the three main financial statements in a balanced panel data model to empirically examine the effect of cash flows per share and capital structure on shareholder value. The results of the study are based on a sample of 270 firm-year observations from the Jordanian commercial banks and insurance companies that listed on Amman Stock Exchange (ASE) from 2011 to 2019. Based on the Fixed Effect Model (FEM) with Driscoll-Kraay standard errors, the empirical results show that cash flows from operating activities per share had a positive and significant relationship with shareholder value, whereas both the cash flows from investing and financing activities per share had negative but insignificant relationship with shareholders’ value. Results also show that capital structure had a negative but insignificant relationship with shareholder value. Finally, the results indicate that dividend per share had a positive and significant relationship with shareholder value. Accordingly, decision-makers should direct cash to efficient investment projects in order for cash outflows from investing activities to create value to shareholders and to generate positive cash flows from financing activities. Similarly, an appropriate capital structure should be selected to create value for shareholders.

scholarly journals Effects of Capital Structure on Financial Performance of Insurance Companies in Nepal

2020 ◽  
Vol 10 (3) ◽  
pp. 35
Author(s):  
Bishnu Prasad Bhattarai
Keyword(s):  
Capital Structure ◽  
Financial Performance ◽  
Annual Report ◽  
Random Effect ◽  
Random Effect Model ◽  
Fixed Effect Model ◽  
Insurance Companies ◽  
Return On Assets ◽  
Total Debt ◽  
Effect Model

The study has examined the effects of capital structure on financial performance of insurance companies in Nepal. Data were collected from the annual report of the respective insurance companies' web site. The panel data of 14 Nepalese insurance companies from 2007/08 to 2015/16, leading to a total of 126 observations. The data were analyzed using pooled OLS model, random effect model and fixed effect model. The study has been return on assets as dependent variable whereas total debt ratio, equity to total assets, leverage, firm size, liquidity ratio and assets tangibility are independent variables. The result concluded that equity to total assets, leverage, and assets tangibility have effects the financial performance in Nepalese insurance companies' cases.

scholarly journals The Impact of Corporate Governance on Earning Management of Non-Financial Firms: Evidence from Pakistan

2021 ◽  
Vol 10 (1) ◽  
pp. 304-312
Author(s):  
MUHAMMAD TAHIR KHAN ◽  
IHTESHAM KHAN ◽  
SHAH RAZA KHAN
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Financial Reporting ◽  
Management Practices ◽  
Stock Exchange ◽  
Research Work ◽  
Fixed Effect Model ◽  
Earnings Information ◽  
Financial Firms ◽  
The Impact

The main objective of the firm is to maximize the shareholder’s wealth; to achieve this objective the management indulge the earnings information by manipulation practices such practices reduce investors’ confidence. Furthermore, a hypothetical dispute recommends that a better quality of financial reporting reduce the information asymmetry, by refining the corporate governance compliance, result in reducing earnings management practices. Thus the main aim of this study is to explore the impact of corporate governance on earnings management by using panel data sample of 257 non-financial firms listed in Pakistan stock exchange for the period of 2012 to 2019 through Fixed effect model along with control variables. The results disclose that the CG system of Pakistan negatively and significantly impacts the EM activities of the companies registered in Pakistan stock exchange. Hence, concludes that the CG system is more effective to prevent the EM process. The entire results are seamless with prior research work that the effective CG scheme of the firms controls the EM and collapse of businesses. Keywords: Earnings Management, Corporate Governance, Corporate Governance Index.

scholarly journals Analisis Pengaruh Profitabilitas, Likuiditas dan Struktur Modal Terhadap Nilai Perusahaan Perbankan yang Terdaftar Di Bursa Efek Indonesia (BEI) Periode 2014-2018

2020 ◽  
Vol 4 (6) ◽  
pp. 293
Author(s):  
Richard Richard
Keyword(s):  
Regression Analysis ◽  
Capital Structure ◽  
Firm Value ◽  
Stock Exchange ◽  
Random Effect ◽  
Random Effect Model ◽  
Model Method ◽  
Effect Model ◽  
Research Show

This study examines the effect of profitability, liquidity and capital structure on firm value of banking companies listed in Indonesia Stock Exchange from 2014 until 2018. Samples of this study were 20 banking company. The method of analysis used in this research is regression analysis of data panel with Random Effect Model method. The result of this research show that profitability and capital structure partially have significant effect on firm value of banking company, while liquidity have no significant effect on firm value of banking company.

scholarly journals Excess cash holding, likuiditas, dan nilai perusahaan: Studi pada perusahaan non-finansial Indonesia

2021 ◽  
Vol 20 (2) ◽  
pp. 159-166
Author(s):  
Felicia Santoso ◽  
Rita Juliana
Keyword(s):  
Firm Value ◽  
Stock Exchange ◽  
Random Effect ◽  
Random Effect Model ◽  
Cash Holding ◽  
Financial Constraint ◽  
Financial Firms ◽  
Effect Model ◽  
Excess Cash ◽  
Positive Effect

This study aims to investigate the effect of excess cash on liquidity and firm value. The sample that is used is 211 non-financial firms listed in Indonesia Stock Exchange (IDX) with period from 2007 to 2017, resulting a total of 2321 firm-year observations. The regression model used are fixed effect and random effect model. The results show that excess cash increase trading continuity and decrease liquidity risk. This result can be caused by uninformed trader trading participation. Additionally, excess cash has a positive effect on firm value directly because with excess cash firm can invest. The study also finds that the effect of excess cash on illiquid firm value is negative, this result happened because excess cash can increase firm’s information asymmetry problem. Finally, we also find that excess cash has higher effect on small size firms with financial constraint problems and higher growth opportunities.

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