scholarly journals The Determinants of Capital Structure: A Comparative Study between Sharia and Non-Sharia Manufacturing Companies in Indonesia Stock Exchange (IDX)

2020 ◽  
Vol 2 (01) ◽  
pp. 73-85
Author(s):  
Imam Akbar Ilham Arif ◽  
Muhammad Umar Mai
Keyword(s):  
Capital Structure ◽  
Capital Market ◽  
Stock Exchange ◽  
Company Performance ◽  
Manufacturing Companies ◽  
Optimal Capital Structure ◽  
Specific Rule ◽  
Optimal Capital ◽  
Almost All

Every company has a long-term goal to maximize the value of the company, which also means to maximize  the prosperity of its shareholders. One of the ways to achieve this goal is to determine the optimal capital structure. The optimal capital structure allows the company to bear the low average cost of the capital. Therefore, the decision of capital structure is one of the most important decisions.Go public manufacturing companies in Indonesia Stock Exchange are divided into two groups; the sharia and non-sharia companies. Sharia companies, including the sharia manufacturing ones, have specific rule in the use of funds as the company capital. The rule states that the maximum use of usury-based debt is by 45%. At the same time, the theories about capital structure and research results support the use of debt as the main source of funds. This study used data obtained from the Indonesian Capital Market Directory and Summary of Company Performance for the period of 2011-2017. They were analyzed by using panel data for multiple regression analysis and difference tests. The results show significant differences between sharia and non-sharia manufacturing companies with a probability of 0,000. Moreover, almost all determinant factors such as Size, Tangibility, Profitability, and Gross Domestic Product have significant effects on Book Leverage as an indicator of Capital Structure for both groups of companies.

scholarly journals Analisis Pengaruh Ukuran Perusahaan, Profitabilitas, Likuiditas Terhadap Struktur Modal pada Perusahaan Jasa Sektor Keuangan Perbankan yang Terdaftar di Bursa Efek Indonesia pada Tahun 2014 – 2018

2020 ◽  
Vol 4 (4) ◽  
pp. 117
Author(s):  
Natashia Natashia ◽  
Indra Widjaja
Keyword(s):  
Capital Structure ◽  
Capital Market ◽  
Stock Prices ◽  
Company Size ◽  
Company Performance ◽  
Optimal Capital Structure ◽  
Optimal Capital ◽  
A Company ◽  
Financial Result ◽  
The Capital Market

An optimal capital structure is an important financial result because it increases the performance and value of a company. Good company performance on stock prices in the capital market, so that returns obtained by shareholders can be obtained optimally. In making decisions about companies consider several factors before choosing both internal and external namely: company size, profitability and liquidity. In this study, shows the size of the company, profitability and liquidity of the company's capital structure in 2014 - 2018

scholarly journals Penentuan Struktur Modal Optimal Pada Perusahaan Sektor Properti, Real Estate, dan Kontruksi yang Terdaftar di Bursa Efek Indonesia

2015 ◽  
Vol 4 (1) ◽  
pp. 94
Author(s):  
M. Rustam
Keyword(s):  
Real Estate ◽  
Capital Structure ◽  
Stock Exchange ◽  
Simulation Method ◽  
Data Set ◽  
Optimal Capital Structure ◽  
Construction Companies ◽  
Minimum Capital ◽  
Optimal Capital

The purpose of this study is to determine the optimal capital structure of property, real estate, and construction companies listed in Indonesia Stock Exchange. The motivation of this study is due to the current research results are still not able to answer whether the optimal capital structure exists. Based on trade-off theory, the optimal capital structure occurs when a company has a minimum capital cost. However,  it is not explained how much capital structure needed to achieve the company maximum value. In addition, this sample business sector is chosen because there are a numeours firms with an adequate long-term debt which make it possible to examine their capital structure. The method used are the nonlinear regression and Monte Carlo simulation method. These methods were chosen because the formulation of optimal capital structure is arguably complex. There are 47 samples from all property, real estate, and construction companies. The data set covered 11 years ie (2000-2010). The results showed that the optimal capital structure of properties, real estate and construction companies which are measured by the ratio between the long-term debt and equity is 0.99. Most companies of these sectors have not reached the optimal capital structure yet because the average results from these companies are 0.31.

FAKTOR-FAKTOR YANG MEMPENGARUHI STRUKTUR MODAL PADA PERUSAHAAN MANUFAKTUR DI BURSA EFEK INDONESIA TAHUN 2008-2010

2014 ◽  
Vol 3 (2) ◽  
Author(s):  
Ruflah M Daud
Keyword(s):  
Capital Structure ◽  
Ownership Structure ◽  
Capital Market ◽  
Stock Exchange ◽  
Secondary Data ◽  
Financial Statements ◽  
Fiscal Year ◽  
Company Size ◽  
Sampled Data ◽  
Manufacturing Companies

This study aimed to examine and analyze the effect of liquidity, profitability, company size and ownership structure on capital structure in companies listed in Indonesia Stock Exchange from 2008-2010. The population of this research is all manufacturing companies listed in Indonesia Stock Exchange for the period 2008-2010 and published financial statements on December 31 for the fiscal year 2008-2010. This was a censuses research since all population sampled. Data used in this research is secondary data in the form of financial statements in the Indonesia Stock Exchange (IDX) 2008-2010. Data collection was done by the documentation and classifies data based on the financial statements of the criteria determined. Data  required in this research obtained from the Indonesian Capital Market Directory (ICMD) and the Capital Market Reference Center (PRPM) to address the Indonesia Stock Exchange Building Tower 2 1st Floor, Sudirman street Lot 52-53 Jakarta 12190. Based on these criteria, 114 companies obtained to be the target of Population.The results of this study indicate that both simultaneously, liquidity, profitability, company size, and ownership structure affect firm capital structure. Partially, variable profitability and ownership structure has a positive effect, while the variable size of the companiy’s and liquidity negative affect the capital structure of the manufacturing companies listed in Indonesia Stock Exchange from 2008-2010.  Keywords: Liquidity, Profitability, Company Size and Ownership Structure, Capital Structure

Company performance and optimal capital structure: evidence of transition economy (Russia)

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Vladislav Spitsin ◽  
Darko Vukovic ◽  
Sergey Anokhin ◽  
Lubov Spitsina
Keyword(s):  
Capital Structure ◽  
Interest Rates ◽  
Transition Economies ◽  
Transition Economy ◽  
High Tech ◽  
Company Performance ◽  
Return On Assets ◽  
Content Type ◽  
Optimal Capital Structure ◽  
Optimal Capital

PurposeThe paper analyzes the effects of the capital structure on company performance (return on assets). The analysis is conducted in a large sample of high-tech manufacturing and service companies in the transition economy (Russian Federation). In addition to the aggregated analysis, separate investigations are conducted to scrutinize the impact of company age, size and location factors (the effects of agglomerations). This research postulates the existence and variability of the optimal capital structure and its dependence on economic crisis.Design/methodology/approachWe utilized a large sample that includes 1,826 enterprises over the period from 2013 to 2017. The estimation was performed using the panel-corrected standard error estimation technique (Prais–Winsten regression) to account for the panel nature and distributional properties of our data. The existence of the optimal capital structure was assessed based on a curvilinear (quadratic) function.FindingsThe results are consistent with the Static Trade-off Theory and show that this theory is applicable to countries with transition economy. They demonstrate that effective management of the capital structure can increase return on assets by 16–22%. The optimal share of borrowed capital is higher for small businesses compared to larger ones and for enterprises located in agglomerations compared to those located in other regions. A greater increase in profitability can be achieved by larger firm companies compared to smaller ones. High share of borrowed capital leads to negative profitability, i.e. to losses by enterprises. No significant differences in profitability growth were identified between young and mature enterprises. The optimal share of borrowed capital that maximizes return on assets is in the range of 0–21%.Research limitations/implicationsDue to the SPARK policies, our access to the data has been limited to a five-year window, which imposed certain limitations on the choice of econometric methods we could have employed and somewhat limited our ability to contrast the effect of the crisis period with the period of stability. In this sense, although our results pertaining to the effect of the crisis could be treated as conservative, future research should consider extending the panel to include more years into consideration.Practical implicationsWe identified significant differences between optimal capital structures and actual capital structures for high-tech enterprises. The contribution of this study is that the calculations were made for a country with a transition economy under crisis conditions. Countries with transition economies and developing countries tend to be characterized by a high level of interest rates on loans and a high proportion of borrowed capital in total assets. This poses difficulties for companies relying on borrowed capital to finance their operations. At the same time, our results demonstrate that in transition economies, enterprises in high-tech industries do have an optimal capital structure that allows maximizing firm performance. That is, Static Trade-off Theory is applicable to transition economies characterized by high interest rates on loans.Originality/valueThe novelty of this study lies in the detailed analysis of high-tech industries in Russian Federation. This analysis makes use of sophisticated econometric techniques for the first time in this context.

scholarly journals The influence of profitability, size, and growth on the capital structure in consumer goods companies

2019 ◽  
Vol 7 (2) ◽  
Author(s):  
Yovilanda Anggraeni Puspitasari ◽  
Diah Ekaningtias
Keyword(s):  
Regression Analysis ◽  
Capital Structure ◽  
Consumer Goods ◽  
Stock Exchange ◽  
Study Data ◽  
Optimal Capital Structure ◽  
Internal Funds ◽  
Optimal Capital ◽  
Operational Activities ◽  
The Capital Structure

Capital structure is a very important element needed by companies to conduct the companies’ operational activities. Companies must determine whether to use internal funds first or external funds to finance investment in getting an optimal capital structure. The purpose of this study is to examine the influence of the variables of profitability, size and growth on the capital structure in consumer goods companies. Multiple regression analysis is used to analyze the data in this study. Data analysis is conducted on consumer goods companies listed on the Indonesia Stock Exchange period 2012-2016. Based on the analysis, it is found that profitability, size, and growth have an effect on capital structure in consumer goods companies listed on the Indonesia Stock Exchange 2012-2016.

scholarly journals PENGARUH STRUKTUR MODAL DAN STRUKTUR KEPEMILIKAN TERHADAP KINERJA PERUSAHAAN DENGAN CORPORATE GOVERNANCE SEBAGAI VARIABEL MODERASI

2021 ◽  
Vol 10 (2) ◽  
pp. 100
Author(s):  
Maretha Kris Dwi Anggreni ◽  
Robiyanto Robiyanto
Keyword(s):  
Corporate Governance ◽  
Regression Analysis ◽  
Capital Structure ◽  
Capital Market ◽  
Stock Exchange ◽  
Analysis Tool ◽  
Company Performance ◽  
Optimal Point ◽  
Purposive Sampling

ABSTRACT This study aims to examine the effect of capital structure and ownership on company performance with moderation of corporate governance in trade, service and investment sector companies in 2016- 2019. The research data was obtained from the Indonesian Capital Market Directory (ICMD) and the annual financial reports listed on the Indonesia Stock Exchange. The total sample obtained based on the purposive sampling method was 76 samples and tested using the Eviews 9 analysis tool. The analysis technique used panel data regression analysis and Moderated Regression Analysis (MRA). Capital structure and corporate governance as proxied by the role of independent commissioners are proven to improve company performance. The implication of this research is to provide empirical evidence regarding the role of corporate governance in moderating capital structure and ownership structure on company performance. The use of debt in the capital structure can have a positive influence on the company's performance. So the applied implication for the company is that it can increase debt in its capital structure by taking into account the optimal point. In addition, companies can optimize the role of independent commissioners as corporate governance to improve supervision within the company so as to improve company performance. ABSTRAKPenelitian ini bertujuan menguji pengaruh struktur modal dan kepemilikan terhadap kinerja perusahaan dengan moderasi corporate governance pada perusahaan sektor perdagangan, jasa dan investasi tahun 2016-2019. Data penelitian ini diperoleh dari Indonesian Capital Market Directory (ICMD) dan laporan keuangan tahunan yang tercatat pada Bursa Efek Indonesia. Total sampel diperoleh berdasarkan metode pengumpulan data purposive sampling adalah sebanyak 76 sampel dan diuji menggunakan alat analisis Eviews 9. Teknik analisis pada penelitian ini menggunakan analisis regresi data panel dan Moderated Regression Analysis (MRA). Variabel struktur modal serta variabel moderasi corporate governance yang diproksikan dengan peran komisaris independen terbukti dapat meningkatkan kinerja perusahaan. Implikasi dari penelitian ini adalah memberikan bukti secara empiris terkait peran corporate governance dalam memoderasi struktur modal dan struktur kepemilikan terhadap kinerja perusahaan. Penggunaan utang pada struktur modal mampu memberikan pengaruh positif terhadap kinerja perusahaan. Maka implikasi terapan bagi perusahaan yaitu dapat meningkatkan utang pada struktur modalnya dengan memperhatikan titik optimal. Selain itu, perusahaan dapat mengoptimalkan peran komisaris independen sebagai corporate governance untuk meningkatkan pengawasan dalam perusahaan sehingga meningkatkan kinerja perusahaan.JEL : G30, G32, G34

ANALISIS FAKTOR-FAKTOR YANG MEMPENGARUHI STRUKTUR MODAL PADA PERUSAHAAN BATUBARA

2020 ◽  
Vol 3 (2) ◽  
pp. 109
Author(s):  
Rahmad Fuadiantoni ◽  
Suratna Suratna ◽  
Indro Herry Mulyanto
Keyword(s):  
Capital Structure ◽  
Growth Rates ◽  
Financial Management ◽  
Stock Exchange ◽  
National Development ◽  
Sales Growth ◽  
Optimal Capital Structure ◽  
Optimal Capital ◽  
Operating Leverage ◽  
The Capital Structure

Rahmad Fuadiantoni, Student Identity Number 152140102, Business Administration Study Program, Faculty of Social and Political Sciences, National Development University "Veteran" Yogyakarta. Title of research Analysis of Factors Affecting Capital Structure of Coal Companies Listed on Indonesia Stock Exchange Period 2012-2016. Advisor Suratna and IndroHerry Mulyanto.This study aims to determine the factors that affect the capital structure of coal companies listed on the Indonesia Stock Exchange either partially or simultaneously. This type of research is explanatory research. The sampling technique used is purposive sampling. Of the 22 coal companies listed on the Indonesia Stock Exchange, only 19 companies were taken as samples, because they have complete financial statements for 2012-2016. The analysis technique used is multiple linear regression analysis, which was previously tested with the classical assumption test and hypothesis testing using partial t test, simultaneous F test with a level of significance of 5%.The result of this research, asset structure has significant effect to capital structure. This is evidenced by a significance value of 0.017 (p ≤ 0.05). Operating leverage has a significant effect on capital structure. This is evidenced by a significance value of 0.036 (p ≤ 0.05). The level of sales growth has a significant effect on capital structure. This is evidenced by a significance value of 0.028 (p ≤ 0.05). Profitability has a significant effect on capital structure. This is evidenced by the significance value of 0.032 (p ≤ 0.05). Liquidity significantly affects the capital structure. This is evidenced by a significance value of 0.029 (p ≤ 0.05). Asset structure, operating leverage, sales growth rate, profitability, and liquidity simultaneously have a significant effect on the capital structure. This is evidenced by the significance value of F of 0.000 (p ≤ 0.05).          Conclusion, partially asset structure variables, operating leverage, sales growth rates, profitability, and liquidity have a significant effect on the capital structure. While simultaneously asset structure variables, operating leverage, sales growth rates, profitability (ROA), and liquidity have a significant effect on the capital structure. Research suggestions, for companies, companies should have plans and strategies in financial management to establish an optimal capital structure in order to maximize company profits and value. For financial management in determining the optimal capital structure should consider the factors that affect the capital structure of the asset structure, operating leverage, the level of sales growth, profitability, and liquidity. By considering these factors it is expected that the management will be easier in determining the optimal capital structure. For the researcher, for the next research should be able to use or add variables and samples in order to get better results and extend the period or time period in the observation, because the opportunity to obtain more information.

Crisis Effects on the Capital Structure Determinants for Manufacturing Companies

2013 ◽  
pp. 225-240
Author(s):  
Osman Sahin
Keyword(s):  
Data Analysis ◽  
Capital Structure ◽  
Stock Exchange ◽  
Panel Data Analysis ◽  
Hierarchy Theory ◽  
Manufacturing Companies ◽  
Crisis Period ◽  
Istanbul Stock Exchange ◽  
The Capital Structure

The purpose of the study is to investigate crisis effects on the capital structure determinants for manufacturing companies listed on the Istanbul Stock Exchange Market (ISE) in Turkey for the period 2005-2010. This period is divided into two parts: The period of 2005-2007 is used as pre-crisis period, and the period of 2008-2010 is used as a crisis period. The periods are compared to understand crisis effect on the capital structure determinants. The panel data analysis is used for this study. Short term, long term, and total debt ratios are used as a proxy for the analysis. The sample consists of 138 manufacturing companies in Turkey over the period of 2005-2010. As a result, manufacturing companies’ capital structure is usually determined in accordance with the financial hierarchy theory. During financial crisis, the effects of capital structure determinants deviate from expectations.

scholarly journals Customer Satisfaction, Efficiency, and Capital Structure as Determinants of Performance Transportation Companies in Indonesia

2017 ◽  
Vol 8 (1) ◽  
pp. 123-133
Author(s):  
◽  
Abdullah Sanusi ◽  
Hendragunawan S. Thayf ◽  
Nur Alamzah
Keyword(s):  
Customer Satisfaction ◽  
Capital Structure ◽  
Capital Market ◽  
High Performance ◽  
Secondary Data ◽  
Sales Growth ◽  
Optimal Capital Structure ◽  
Optimal Capital ◽  
And Performance ◽  
The Relationship

Abstract This study aimed to describe the influence of customer satisfaction, efficiency and optimal capital structure to the increase of the performance of transportation companies in Indonesia. The study was designed in the relationship between variables. The data used is secondary data obtained from the Indonesian Capital Market Directory (ICMD) and the website of 22 companies that were used as samples for 3 years. Data were analyzed using descriptive and inferential statistics analysis to test the hypothesis. The result showed that the efficiency affected customer satisfaction and was reflected in the sales growth of the company. However, it did not have an impact on the level of capital structure as reflected in DER and the performance which reflected in ROA. We also found that there was an indirect effect on the efficiency of the capital structure and performance through customer satisfaction. We also found that there is a significant indirect influence on the efficiency and the performance through customer satisfaction and capital structure. Customer satisfaction capital affects the structure. When customer satisfaction is high, which is reflected in higher sales growth aspect, it will have an impact on the high capital structure, which is reflected in DER. The result shows that customer satisfaction has an effect on the performance. When customer satisfaction is high, which is reflected in higher sales growth aspect, it will have an impact on the high performance, which is reflected in aspects of ROA. The result also indicates that capital structure affects the performance. When a capital structure is high, which is reflected by the high DER aspects, it will impact on the high performance, which is reflected on aspects of ROA.

Dynamic Model of Optimal Capital Structure: Evidence from Nigerian Listed Firms

2017 ◽  
Vol 18 (3) ◽  
pp. 590-604 ◽  
Author(s):  
Rubi Ahmad ◽  
Oyebola Fatima Etudaiye-Muhtar
Keyword(s):  
Capital Structure ◽  
Stock Exchange ◽  
Adjustment Costs ◽  
Dynamic Adjustment ◽  
Listed Firms ◽  
Optimal Capital Structure ◽  
Developed Economies ◽  
Tax Shield ◽  
Financial Firms ◽  
Optimal Capital

Examination of optimal capital structure in financial markets with imperfections suggests that when deviations from optimal capital structure occur, adjustment costs may prevent firms from moving towards target capital structure. However, previous studies on the capital structure of non-financial firms in Nigeria did not consider these imperfections and adjustment costs. It is against this background that this study investigates the dynamic adjustment to target capital structure by non-financial firms listed on the Nigerian Stock Exchange. By utilizing a framework that provides for the determination of adjustment costs, the results reveal the existence of dynamic adjustment to optimal capital structure suggesting attempts made by the sampled firms to maximize shareholders wealth. A comparison of the adjustment costs with those of firms in more developed economies shows that Nigerian firms have higher costs of adjustment indicating that the level of development of the market is important in lowering transaction costs. In addition, tangibility of assets, non-debt tax shield, growth opportunity, firm size, profitability and inflation significantly influence Nigerian firms’ optimal capital structure.

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