Firm Size as Moderator to Capital Structure-Its Determinants Relations

Objective – Capital structure policy is a strategic decision related to the selection of funding sources. The best mixed of capital structure will produce a low cost of capital, which in turn can maximize the value of the company. This study aims to determine the effect of company size as a moderator on the relationship of capital structure and its determinant factors on manufacturing companies in Indonesia and Malaysia. Methodology – Data were collected from 40 manufacturing companies listed on the Indonesia Stock Exchange and 130 manufacturing companies listed on the Bursa Malaysia during 2008-2017. This study will analyze the determinants of capital structure consisting of liquidity, profitability, tangibility and efficiency as well as company size as a moderating variable. The research method uses panel data regression. Findings – The company size provides a moderating effect on the relationship between capital structure with liquidity, profitability, tangibility and efficiency, and this moderation effect is strengthened in large companies in Indonesia. Instead, this moderation effect is weakening for large companies in Malaysia Novelty – Research shows that the "modified pecking order" model is better able to explain the capital structure, policies of manufacturing companies in Indonesia and Malaysia compared to the traditional pecking order and trade off theory models. Type of Paper: Empirical Keywords: Capital Structure; Pecking Order Theory; Trade Off Theory; Manufacturing Company; Moderating Effect. Reference to this paper should be made as follows: Sari, M; Netti, S.N; Sulastri, S. 2019. Firm Size as Moderator to Capital Structure-Its Determinants Relations, J. Fin. Bank. Review 4 (3): 108–115 https://doi.org/10.35609/jfbr.2019.4.3(4) JEL Classification: G23, G30, G32.

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The Influence of Capital Structure, Growth, Company Size to Profitability and Company Value of Manufacture Firms Listed in Indonesia Stock Exchange

HASANUDDIN JOURNAL OF BUSINESS STRATEGY ◽

10.26487/hjbs.v1i3.254 ◽

2019 ◽

Vol 1 (3) ◽

pp. 66-78

Author(s):

Bernon Sampe Tondok ◽

Cepi Pahlevi ◽

Andi Aswan

Keyword(s):

Capital Structure ◽

Firm Size ◽

Positive Impact ◽

Stock Exchange ◽

Company Size ◽

Manufacturing Companies ◽

Descriptive Research ◽

Company Value ◽

Quantitative Descriptive ◽

Company Growth

This study examines the effect of capital structure, company growth, company size on profitability and company value the cases of manufacturing companies listed on the Indonesia Stock Exchange. This research is quantitative descriptive research using path analysis. Classical assumption evaluations are conducted comprising of normality, linearity, autocorrelation, multicollinearity, and heteroscedasticity test. The sample is 33 manufacturing companies listed on the Indonesia Stock Exchange from period 2013 – 2017. The results of the study found that there was a positive impact of capital structure, company growth, firm size on profitability and value of manufacturing companies.

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STRUKTUR MODAL DAN UKURAN PERUSAHAAN TERHADAP NILAI PERUSAHAAN DENGAN PROFITABILITAS SEBAGAI VARIABEL INTERVENING. (STUDI KASUS PADA PERUSAHAAN MANUFAKTUR SEKTOR INDUSTRI BARANG KONSUMSI YANG TERDAFTAR DI BEI PERIODE 2016-2018).

JURNAL ILMIAH EDUNOMIKA ◽

10.29040/jie.v4i02.1219 ◽

2020 ◽

Vol 4 (02) ◽

Author(s):

Anindiya Mustika Gunarwati ◽

Siti Maryam ◽

Sudarwati Sudarwati

Keyword(s):

Capital Structure ◽

Firm Size ◽

Firm Value ◽

Stock Exchange ◽

Sampling Technique ◽

Company Size ◽

Manufacturing Companies ◽

Descriptive Research ◽

Company Value ◽

Quantitative Descriptive

The purpose of this study was to determine the effect of Capital Structure and Firm Size on Firm Value with Profitability as Intervening Variables. (Case Study on Manufacturing Companies in the Consumer Goods Industry Sector which are listed on the Indonesia Stock Exchange for the 2016-2018 Period). This research uses quantitative descriptive research type. Sample 27 companies using Purposive sampling technique. The analysis method uses path analysis with SPSS software version 21.Based on the test result min this study that the variable capital structure and company size have a positive and significant effect on profitability. Capital structure has no effect on firm value, firm size and profitability affect company value, and profitability is able to mediate the effect of capital structure and firm size on firm value. Keywords: capital structure, company size, profitability and firm value.

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The Moderating Effect of Firm Size on the Relationship Between Capital Structure and Financial Distress of Non-Financial Companies Listed in Kenya

Journal of Finance and Accounting ◽

10.11648/j.jfa.20170504.15 ◽

2017 ◽

Vol 5 (4) ◽

pp. 151 ◽

Cited By ~ 1

Author(s):

Robert Gitau Muigai

Keyword(s):

Capital Structure ◽

Firm Size ◽

Financial Distress ◽

Moderating Effect ◽

The Relationship

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How Does Firm Size and Capital Structure Affect Firm Value?

Journal of Management and Entrepreneurship Research ◽

10.34001/jmer.2020.12.01.2-7 ◽

2021 ◽

Vol 1 (2) ◽

Author(s):

Radhika Putri Nursetya ◽

Lina Nur Hidayati

Keyword(s):

Capital Structure ◽

Firm Size ◽

Firm Value ◽

Stock Exchange ◽

Data Gathering ◽

Value Added ◽

Company Size ◽

Corporate Value ◽

Manufacturing Companies ◽

Corporate Valuation

Objective: This paper explores whether the firm size and capital structure have an impact on corporate valuation. Then it will raise profitability as an intervening variable on the effect of company size and capital structure on corporate valuation. Research Design & Methods: Data gathering method is finalized by using the documentation method. In this study, data were obtained from published financial reports. Samples from this study were 30 manufacturing companies listed on the Indonesia Stock Exchange. Findings: The results exhibited that firm size affected profitability and firm value. In the meantime, the capital structure has a big influence on performance and does not affect the company's valuation. Profitability has a positive effect on corporate value. This study also concludes that profitability can mediate firm size to firm value. Conversely, profitability cannot mediate capital structure on corporate value. Implications & Recommendations: This study offers empirical evidence that profitability can be an intervening variable in firm size's effect on firm value. In further research, other variables can be added, which are considered to mediate company size and capital structure on corporate value. Contribution & Value Added: This study's results contribute to the financial literature, especially those related to public corporations' value in Indonesia. As a practical contribution, stockholders can use this study's outcomes as additional information in investment decisions.

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Pengaruh Profitabilitas Dan Pertumbuhan Perusahaan Terhadap Struktur Modal Pada Perusahaan Manufaktur Dengan Tingkat Inflasi Sebagai Variabel Moderasi

Jurnal Manajerial Dan Kewirausahaan ◽

10.24912/jmk.v2i2.7925 ◽

2020 ◽

Vol 2 (2) ◽

pp. 327

Author(s):

Juvenlianto Juvenlianto ◽

Nyoman Suprastha

Keyword(s):

Capital Structure ◽

Firm Size ◽

Firm Growth ◽

Stock Exchange ◽

Negative Influence ◽

Research Data ◽

Manufacturing Companies ◽

Inflation Rates ◽

Relationship Of ◽

The Relationship

This study was conducted to find out how the influence of profitability and firm growth on capital structure, in this study there is also a moderating variable that is the rate of inflation used to moderate the relationship of firm growth to capital structure. The sample of this research is manufacturing companies listed on the Indonesia Stock Exchange (IDX) in 2015-2017. Processing and testing of research data is done using the EVIEWS 9.0 application program. The results of this study indicate that profitability and firm growth have a negative influence on capital structure, and inflation rates strengthen the relationship of firm size to capital structure. Penelitian ini dilakukan untuk mengetahui pengaruh profitabilitas dan pertumbuhan perusahaan terhadap struktur modal, dalam penelitian ini juga terdapat variabel moderasi bernama tingkat inflasi yang digunakan untuk memoderasi hubungan pertumbuhan perusahaan dengan struktur modal. Sampel penelitian ini adalah perusahaan manufaktur yang terdaftar di Bursa Efek Indonesia (BEI) 2015-2017. Pemrosesan dan pengujian data penelitian dilakukan dengan menggunakan program aplikasi EVIEWS 9.0. Hasil penelitian ini menunjukkan bahwa profitabilitas dan pertumbuhan perusahaan memiliki pengaruh negatif terhadap struktur modal, dan tingkat inflasi memperkuat hubungan pertumbuhan perusahaan dengan struktur modal.

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Analisis Faktor-Faktor Yang Mempengaruhi Revaluasi Aset Tetap Dengan Pertumbuhan Perusahaan Sebagai Variabel Moderating (Study Pada Perusahaan Manufaktur Yang Terdaftar Di BEI)

JEMAP ◽

10.24167/jemap.v3i2.2827 ◽

2020 ◽

Vol 3 (2) ◽

pp. 266

Author(s):

Ngatoah Niswah Baroroh

Keyword(s):

Firm Size ◽

Firm Growth ◽

Company Size ◽

Manufacturing Companies ◽

Fixed Asset ◽

Purposive Sampling ◽

Fixed Assets ◽

Company Growth ◽

The Relationship ◽

Positive Effect

Penelitian ini bertujuan untuk menguji pengaruh leverage, ukuran perusahaan, intensitas aset tetap serta likuiditas terhadap revaluasi aset tetap dengan pertumbuhan perusahaan sebagai variabel moderating. Populasi dalam penelitian ini adalah perusahaan manufaktur yang terdaftar di BEI tahun 2014-2018. Penelitian ini menggunakan metode purposive sampling dan diperoleh sampel sebanyak 76 perusahaan sampel. Penelitian ini menggunakan Teknik analisis regresi moderasi menggunakan software IBM SPSS 21. Hasil penelitian ini menunjukkan bahwa leverage likuiditas tidak berpengaruh terhadap revaluasi, sedangkan ukuran perusahaan dan intensitas aset tetap berpengaruh positif terhadap keputusan revaluasi aset tetap. Variabel pertumbuhan perusahaan terbukti tidak berpengaruh dalam momedarasi hubungan antara leverage, ukuran perusahaan, dan likuiditas namun terbukti memoderasi hubungan antara intensitas aset tetap terhadap keputusan revaluasi aset tetap. Simpulan dari penelitian ini adalah leverage dan likuiditas tidak berpengaruh terhadap revaluasi sedangkan ukuran perusahaan dan intensitas aset tetap berpengaruh terhadap keputusan revaluasi. Pertumbuhan perusahaan tidak terbukti memoderasi pengaruh leverage, ukuran perusahaan, serta likuiditas terhadap revaluasi aset namun terbukti memoderasi pengaruh intensitas aset tetap terhadap revaluasi aset tetap.Kata Kunci : Leverage, Ukuran Perusahaan, Intensitas Aset Tetap, Likuiditas, Revaluasi Aset Tetap, Pertumbuhan Perusahaan. AbstractThis study aims to examine the effect of leverage, company size, intensity of fixed assets and liquidity on fixed asset revaluation with company growth as a moderating variable. The population in this study are manufacturing companies listed on the IDX in 2014-2018. This study used a purposive sampling method and obtained a sample of 76 sample companies. This study uses moderated regression analysis using IBM SPSS 21 software. The results of this study indicate that liquidity leverage has no effect on revaluation, while firm size and fixed asset intensity have a positive effect on fixed asset revaluation decisions. The firm growth variable is proven to have no effect on the momentum of the relationship between leverage, firm size and liquidity, but it is proven to moderate the relationship between fixed asset intensity and fixed asset revaluation decisions. The conclusion of this study is that leverage and liquidity do not affect revaluation, while firm size and intensity of fixed assets have an effect on revaluation decisions. Company growth has not been shown to moderate the effect of leverage, company size, and liquidity on asset revaluation but has been shown to moderate the effect of fixed asset intensity on fixed asset revaluation.Keywords: Leverage, Company Size, Fixed Asset Intensity, Liquidity, Fixed Asset Revaluation, Company Growth.

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Non-Mutually Exclusive Trade-off and Pecking Order Theories: A Study in Indonesia

Jurnal Manajemen Bisnis ◽

10.18196/mb.v12i1.9542 ◽

2021 ◽

Vol 12 (1) ◽

pp. 71-87

Author(s):

Wihandaru Sotya Pamungkas ◽

Arni Surwanti

Keyword(s):

Data Analysis ◽

Capital Structure ◽

Empirical Evidence ◽

Policy Implication ◽

Research Finding ◽

Financial Sector ◽

Manufacturing Companies ◽

Pecking Order ◽

Trade Off ◽

Subsequent Research

Research aim: This study aimed to strengthen empirical evidence that the trade-off (TOT) and pecking order (POT) theories in Indonesia are non-mutually exclusive.Design/methodology/approach: This study employed a sample of 636 manufacturing companies from 2014 to 2018.Research finding: The results revealed that companies in Indonesia used a Capital Structure consistent (CS) with the TOT and POT, or in other words, the TOT and POT theories are non-mutually exclusive.Theoretical contribution/originality: This study is different from previous research on data analysis strengthened by separating underleveraged and overleveraged companies.Practitioner/Policy implication: CS in Indonesia is following the TOT if it is underleveraged and according to POT if it is overleveraged.Research limitation/implication: This study has the limitation of only using a sample of manufacturing companies in Indonesia. Subsequent research can provide comprehensive results by increasing the sample of all companies excludes the financial sector.

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PENGARUH PROFITABILITAS, UKURAN PERUSAHAAN TERHADAP NILAI PERUSAHAAN DENGAN STRUKTUR MODAL SEBAGAI VARIABEL INTERVENING PADA PERUSAHAAN MANUFAKTUR YANG TERDAFTAR DI BEI

JEMBATAN ◽

10.29259/jmbt.v15i2.6657 ◽

2018 ◽

Vol 15 (2) ◽

pp. 95-108

Author(s):

Nurul Azmi ◽

Isnurhadi Isnurhadi ◽

Umar Hamdan

Keyword(s):

Capital Structure ◽

Firm Size ◽

Firm Value ◽

Stock Exchange ◽

Linear Regression Method ◽

Manufacturing Companies ◽

Multiple Linear Regression Method ◽

Size Firm ◽

The Relationship ◽

Variable Analysis

This research ains to test the influence of profitability, firm size on firm value with capital structure as an intervening variable. Analysis of data were did in the manufacturing companies listed on the Indonesia Stock Exchange during the period 2011-2016. The data analyzed by using multiple linear regression method. The result showed that profitability has negative and significant on capital structure, firm size has negative and significant on capital structure, profitability do not influenced on firm value, firm size do not influenced on firm value, capital structure do not influenced on firm value. Meanwhile the capital stucture can not mediate the relationship between profitability and firm size against firm value. Keywords : profitability, firm size, firm value and capital structure

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Trade off Theory Testing on Company Capital Structure Compass Stock Index 100

Budapest International Research and Critics Institute (BIRCI-Journal) Humanities and Social Sciences ◽

10.33258/birci.v3i4.1503 ◽

2020 ◽

Vol 3 (4) ◽

pp. 4019-4025

Author(s):

Denni Hutapea ◽

Munawarah Munawarah ◽

Angelia Cunata ◽

Calvin Calvin

Keyword(s):

Capital Structure ◽

Observational Data ◽

Firm Size ◽

Quantitative Research ◽

Stock Index ◽

Theory Testing ◽

Research Approach ◽

Company Size ◽

Sales Growth ◽

Trade Off

The research objective was to determine the effect of asset structure, profitability, company size and sales growth on capital structureKompas Stock Index Company 100. Quantitative research approach with explanatory types of research. There are 100 companies in Kompas 100 with the use of a sample of 40 companies with a total of 200 observational data. The result is that the asset structure, profitability, firm size have an effect oncapital structure Kompas Stock Index Company 100. Sales growth has no effect oncapital structure Kompas Stock Index Company 100. Asset structure, profitability, company size and sales growth have an effect on capital structure Kompas Stock Index Company 100.

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PENGARUH KEPEMILIKAN INSTITUSIONAL, PROFITABILITAS, UKURAN PERUSAHAAN DAN PERTUMBUHAN PENJUALAN TERHADAP NILAI PERUSAHAAN DENGAN STRUKTUR MODAL SEBAGAI VARIABEL INTERVENING

Jurnal Riset Ekonomi dan Bisnis ◽

10.26623/jreb.v12i1.1528 ◽

2019 ◽

Vol 12 (1) ◽

pp. 71

Author(s):

Fatimah Nur Isnawati ◽

Kesi Widjajanti

Keyword(s):

Capital Structure ◽

Firm Value ◽

Stock Exchange ◽

Institutional Ownership ◽

Company Size ◽

Sales Growth ◽

Manufacturing Companies ◽

Purposive Sampling ◽

Analytical Technique ◽

The Relationship

Tujuan dari penelitian ini adalah untuk mengukur dan menganalisis pengaruh kepemilikan institusional dan rasio-rasio keuangan perusahaan (profitabilitas, ukuran perusahaan dan pertumbuhan penjualan) terhadap nilai perusahaan dengan struktur modal sebagai variabel intervening pada perusahaan-perusahaan manufaktur yang terdaftar di Bursa Efek Indonesia pada periode 2013 - 2017. Populasi dalam penelitian ini sejumlah 135 perusahaan manufaktur yang terdaftar di Bursa Efek Indonesia periode 2013 – 2017. Teknik pengambilan sampel yang digunakan adalah purposive sampling.Teknik analisis yang digunakan menggunakan program IBM SPSS (Statistical Package for Sosial Science) versi 20. Hasil penelitian menunjukkan hubungan positif signifikan antara variabel profitabilitas, ukuran perusahaan dan struktur modal dengan nilai perusahaan. Penelitian ini juga menunjukkan hubungan tidak signifikan antara kepemilikan institusional dan pertumbuhan penjualan dengan nilai perusahaan. Pada penelitian ini menunjukkan bahwa sturtur modal mampu memediasi hubungan antara profitabilitas, terhadap nilai perusahaan. Struktur modal tidak mampu memediasi hubungan antara kepemilikan institusional, ukuran perusahaan, dan pertumbuhan penjualan terhadap nilai perusahaan. Implikasi penelitian ini untuk meningkatkan kinerja manajemen perusahaan sebaiknya lebih fokus dalam mengelola hasil laba perusahaan dan dapat memberikan keputusan-keputusan yang tepat untuk mendapatkan keuntungan yang berkesinambungan, juga harus dapat mengontrol efesiensi dan efektivitas biaya, mengelola sumber daya yang dimiliki agar dapat terus tumbuh dan berkembang menjadi perusahaan yang besar. Pengambilan keputasan yang tepat mengenai sumber pendanaan yang akan digunakan untuk kegiatan operasional perusahaan. The purpose of this study is to measure and analyze the influence of institutional ownership and company financial ratios (profitability, company size and sales growth) on firm value with capital structure as an intervening variable in manufacturing companies listed on the Indonesia Stock Exchange in the 2013 period - 2017. The population in this study were 135 manufacturing companies listed on the Indonesia Stock Exchange in the period 2013 - 2017. The sampling technique used was purposive sampling. The analytical technique used was the IBM SPSS program (Statistical Package for Social Science) version 20. Results The research shows a significant positive relationship between the variables of profitability, company size and capital structure with firm value. This study also shows the insignificant relationship between institutional ownership and sales growth with firm value. In this study, it shows that capital structure is able to mediate the relationship between profitability, and firm value. Capital structure is not able to mediate the relationship between institutional ownership, company size, and sales growth towards firm value. The implication of this research is to improve the performance of company management should be more focused in managing the results of company profits and can provide the right decisions to get sustainable benefits, also must be able to control efficiency and cost effectiveness, manage the resources they have in order to continue to grow and develop become a big company. Appropriate decision making regarding the source of funding to be used for the company's operational activities.

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