scholarly journals An Assessment on the Influence of Capital Structure on Performance of the Listed Firms in Tanzania

2021 ◽  
Vol 4 (1) ◽  
pp. 1-13
Author(s):  
Martin Ayo ◽  
Seif Muba
Keyword(s):  
Capital Structure ◽  
Significant Influence ◽  
Fixed Effect Model ◽  
Fixed Effect ◽  
Control Effect ◽  
Listed Firms ◽  
Total Debt ◽  
Effect Model ◽  
Equity Ratio ◽  
The Relationship

The research mostly assessed and established the influence of capital structure on the performance of firms listed under the Dar Es Salaam stock exchange (DSE). Specifically, the study aimed to assess the influence of total debt to equity ratio (TDE), total debt to assets ratio (TDA), total equity ratio (TEQ) on the performance of listed firms in Tanzania. Also, the study aimed to determine the control effect of firm size (FS) on the relationship between firm performance and capital structure. The quantitative panel data approach was used. The fixed-effect model for ROA was done to see the influence of TDE on ROA. Results indicated that only TEQ has a significant positive influence on the ROA while TDE and TDA have no significant influence on the ROA. Also, the fixed-effect model for ROCE was carried out to see the relationship between TDE and ROCE. Results showed that TDA and TEQ are insignificant to the ROCE, while TDE is significant to the ROCE. Findings also showed that the presence of the FS on the model of capital structure and ROA, results in TDA, and TEQ having a significant influence on ROA, while TDE becomes insignificant to ROA. Moreover, results indicated that the presence of the FS on the model of capital structure and ROCE results in the only TDE to have a significant influence on ROCE, while TDA and TEQ became insignificant to ROA. The study concluded that TDE has no significant influence on the ROA but TDE has a significant influence on ROCE. Also, the study concluded that TDA has no significant influence on both the ROA and ROCE while TEQ influences ROA positively, and has no significant influence on ROCE. Moreover, the study concluded that the presence of the FS on the model of capital structure and ROA, results in TDA, and TEQ having a significant influence on ROA, while TDE becomes insignificant to ROA. Furthermore, FS resulted in TDE having a significant influence on ROCE, while TDA and TEQ become insignificant to ROCE. The study recommends that companies very carefully must decide on a reasonable capital structure to maintain the performance of the company.

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 FINANCIAL PERFORMANCE OF MANUFACTURING COMPANIES IN IDX AND SOME FACTORS THAT INFLUENCE

2021 ◽  
Vol 19 (2) ◽  
pp. 354-362
Author(s):  
Ichsan Ichsan ◽  
◽  
Ira Silvia ◽  
Mahdawi Mahdawi ◽  
Ghazali Syamni ◽  
...  
Keyword(s):  
Financial Performance ◽  
Fixed Effect Model ◽  
Fixed Effect ◽  
Dominant Factor ◽  
Manufacturing Companies ◽  
Factors Affecting ◽  
Industrial Sectors ◽  
Effect Model ◽  
Study Results ◽  
Equity Ratio

This study aims to examine some factors affecting the financial performance of manufacturing companies in the Indonesia Stock Exchange (IDX). This research uses data on the financial statements of 20 manufacturing companies listed on IDX in the period 20132017 and carried out share distribution facilities for their employees. This research model is a panel regression model done by testing the common effect model, fixed-effect model, and random effect model. Based on the Chow test and Hausman test, it is found that the best model in this study is the fixed effect model. The study results find that dividend policy, a share giving program to employees, and debt to equity ratio are significant factors affecting the financial performance of manufacturing companies in Indonesia. From these three factors, the debt to equity ratio is the dominant factor determining the financial performance of manufacturing companies, while investment decision does not significantly affect it. Future research studies can be carried out by focusing on other industrial sectors such as the Jakarta Islamic Index 70 and adding other macroeconomic variables.

scholarly journals The Influence of Debt Financing on Firms’ Performance: Empirical Evidence from Malaysia

2021 ◽  
Vol 5 (1) ◽  
pp. 76-87
Author(s):  
Yien Yien Lee
Keyword(s):  
Fixed Effect Model ◽  
Short Term ◽  
Return On Assets ◽  
Causality Test ◽  
Listed Firms ◽  
Effect Model ◽  
Lm Test ◽  
And Performance ◽  
The Relationship

This study investigated the relationship between the listed firms’ debt level and performance in Bursa Malaysia during a five-year period. Based on the results of the Hausman test and Breusch-Pagan LM test, the fixed-effect model is the most appropriate model that used to analyze the panel data of 50 Malaysian listed companies within the property sector from the year 2015 to 2019. The results indicated that the short-term debt (STD) and long-term debt (LTD) have positive and insignificant effects on return on asset (ROA), which means that the increase in the short-term debt and long-term debt will lead to an increase in the return on assets. Besides that, account payables (AP) has a negative and insignificant effect on the profitability of property sector companies. According to the outcome of the Granger Causality test, the return on assets does not affect by the account payables, short-term debt, long-term debt and firm size. There is only one unidirectional causality relationship that proves that short-term debt is affected by long-term debt. Additionally, this study focuses on enhancing the existing empirical knowledge of debt financing's influence on the profitability of the listed firms in the property sector.

ANALISIS:PENGARUH;DEMOKRASI TERHADAP;PERTUMBUHAN;EKONOMI INDONESIA;BAGIAN TIMUR

2019 ◽  
Vol 1 (3) ◽  
pp. 877
Author(s):  
Vina Indriani ◽  
Melti Roza Adry
Keyword(s):  
Economic Growth ◽  
Significant Influence ◽  
Fixed Effect Model ◽  
Free Variable ◽  
Fixed Effect ◽  
Analysis Tool ◽  
Control Variables ◽  
Eastern Indonesia ◽  
Effect Model ◽  
Educational Variables

The;purpose of;this research is;to;know:and;analyze:>(1);The;influence of;democracy;on;the economic;growth;of;eastern;Indonesia. (2) Investment influence on the economic growth of eastern Indonesia. (3) The influence of education on economic growth in eastern Indonesia. (4) The influence of democracy, investment, and education jointly towards the;economic;growth;of;eastern;Indonesia.The variables used;in;this study were economic growth as a bound variable and democracy as a free variable, as well as investment and educational variables as control variables. The research used the 17 provincial data panel in eastern Indonesia in 2009-2017. Data is obtained from the Central Statistics agency.The analysis tool used in this study is a regression panel with the model chosen is the Fixed Effect Model. The results showed that: (1) democracy is positive and significant to the economic growth of Eastern Indonesia, (2) investments have positive and significant impact on the economic growth of Eastern Indonesia, (3) education Positive and significant influence on the economic growth of Eastern Indonesia, (4) Democracy, investment, and education jointly significantly]influence{the}economic?growth/of/eastern Indonesia.

scholarly journals The Impact of Different Firm Sizes on Capital Structure Determinants Among Listed Consumer Product Firms In Malaysia

2018 ◽  
Vol 5 (2) ◽  
pp. 1-6
Author(s):  
Hishan S Sanil ◽  
Ahmad Amirul Arsyad bin Noraidi ◽  
Suresh Ramakrishnan
Keyword(s):  
Capital Structure ◽  
Annual Report ◽  
Fixed Effect ◽  
Consumer Product ◽  
Short Term ◽  
Effect Analysis ◽  
Total Debt ◽  
The Impact ◽  
The Relationship

This research is conducted to determine the impact of different firm sizes on the relationship between capital structure determinants and leverage among listed consumer product firms in Malaysia from year 2006 to 2015. All data was taken from annual report of the companies by using DataStream. In 2015, 130 firms were listed in Bursa Malaysia under the consumer product sector. However, only 108 firms were observed as several firms had insufficient data. This study uses the dependent variable of debt ratios i.e. short-term debt, long-term debt and total debt. The independent variables used are firm size, profitability, tangibility, liquidity, growth, non-tax debt shield and business risk. Those results were obtained by applying Pooled OLS and Fixed Effect Analysis. The main finding of this study is that different firm sizes will affect the relationship between capital structure determinants and leverage. The Fixed Effect analysis revealed that all determinants were significant across all types firm sizes. Furthermore, non-tax debt shield had the largest impact to all types of leverage across different firm sizes.

scholarly journals ANALISIS PENGARUH RASIO KEUANGAN TERHADAP HARGA SAHAM PADA PERUSAHAAN PERKEBUNAN YANG TERCATAT DI BURSA EFEK INDONESIA

2020 ◽  
Vol 9 (1) ◽  
pp. 59-76
Author(s):  
Naufal Bintang Aranza ◽  
Lies Sulistyowati
Keyword(s):  
Stock Price ◽  
Stock Exchange ◽  
Fixed Effect Model ◽  
Fixed Effect ◽  
Current Ratio ◽  
Financial Ratio ◽  
Effect Model ◽  
Price Earnings Ratio ◽  
Equity Ratio ◽  
Method Analysis

The purpose of this study to investigate the effect of financial ratio on the stock price of plantation companies listed in Indonesia Stock Exchange. The research method used the associative method in a casual relationship form. The study used an annual report from 14 plantation companies listed in Indonesia Stock Exchange during the period 2014 to 2018 as the study sample. Data method analysis in the study used regression data panel analysis with the fixed-effect model. The result shows that the debt to equity ratio has a significant effect on stock price, whereas the current ratio, return on asset, and the price-earnings ratio has an effect but not significant on stock price from plantation companies. The researcher suggested that investors pay attention to the debt to equity ratio before investing in plantation companies because this ratio can show the investment risk of the company. Keywords: Financial Ratio, Stock Price, Plantation   Penelitian ini bertujuan untuk menganalisa pengaruh dari rasio keuangan terhadap harga saham dari perusahaan perkebunan yang tercatat di Bursa Efek Indonesia. Metode penelitian yang digunakan merupakan metode asosiatif dalam bentuk hubungan kausal. Penelitian menggunakan laporan tahunan dari 14 perusahaan perkebunan yang tercatat di Bursa Efek Indonesia dalam periode 2014-2018 sebagai sampel penelitian. Metode analisa data yang digunakan adalah analisis regresi data panel dengan model fixed effect. Hasil penelitian menunjukan bahwa debt to equity ratio memiliki pengaruh yang signifikan terhadap harga saham, sedangkan untuk current ratio, return on asset, dan price earning ratio tidak memiliki pengaruh signifikan terhadap harga saham dari perusahaan perkebunan. Peneliti menganjurkan kepada investor agar memperhatikan debt to equity ratio sebelum berinvestasi di perusahaan perkebunan karena rasio tersebut dapat memperlihatkan risiko investasi dari perusahaan. Kata Kunci: Harga Saham, Perkebunan, Rasio Keuangan

scholarly journals PENGARUH PROFITABILITAS, LEVERAGE, DAN LIKUIDITAS TERHADAP KEBIJAKAN DIVIDEN PADA PERUSAHAAN MANUFAKTUR YANG TERDAFTAR DI BURSA EFEK INDONESIA

JURNAL PUNDI ◽  
2019 ◽  
Vol 3 (1) ◽  
Author(s):  
Kasnita Bawamenewi ◽  
Afriyeni Afriyeni
Keyword(s):  
Panel Data ◽  
Stock Exchange ◽  
Manufacturing Sector ◽  
Fixed Effect Model ◽  
Fixed Effect ◽  
Current Ratio ◽  
Dividend Payout ◽  
Return On Equity ◽  
Effect Model ◽  
Equity Ratio

The purpose of this research is to test the influence of Profitability variable by using Return On Equity (ROE), Leverage by using Debt to Equity Ratio (DER), and Liquidity variabel by using Current Ratio (CR), to the Dividend Payout Ratio (DPR) on manufacturing sector company are listed in Indonesian Stock Exchange in 2013-2017 periods. In this research the data used was obtained from the official IDX website. This research was included in the explanatory research using quantitative approach. Data analysis method used is regression analysis in panel data with the help of application E-Views8. Panel data regression estimatedr using Fixed Effect Model (FEM).The result showed that the profitability has a negative and significant effect on Dividend Payout Ratio, Leverage has a negative and hasn’t significant effect on Dividend Payout Ratio, while Liquidity has a positive and hasn’t significant effect on Dividend Payout Ratio.Keywords: Dividend Payout Ratio,Profitability, Leverage, LiquidityTujuan dari penelitian ini adalah untuk menguji pengaruh variabel Profitabilitas dengan menggunakan Return On Equity (ROE), Leverage dengan menggunakan Debt to Equity Ratio (DER), dan variabel likuiditas dengan menggunakan Current Ratio (CR), terhadap Kebijakan Deviden ( DPR) pada perusahaan sektor manufaktur yang terdaftar di Bursa Efek Indonesia pada periode 2013-2017. Dalam penelitian ini data yang digunakan diperoleh dari situs web resmi BEI. Penelitian ini termasuk dalam penelitian penjelasan dengan menggunakan pendekatan kuantitatif. Metode analisis data yang digunakan adalah analisis regresi data panel dengan bantuan aplikasi E-Views . Data panel regresi menggunakan Fixed Effect Model (FEM). Hasil penelitian menunjukkan bahwa profitabilitas berpengaruh negatif dan signifikan terhadap Kebijakan Deviden, leverage berpengaruh negatif dan tidak signifikan terhadap Kebijakan Deviden, sedangkan likuiditas berpengaruh positif dan tidak signifikan terhadap Kebijakan Deviden.Kata Kunci : Kebijakan Dividen, Profitabilitas, Leverage, Likuiditas 

scholarly journals DEBT EQUITY AND SHARE PRICE PERFORMANCE OF MANUFACTURING COMPANIES LISTED IN NIGERIA

2021 ◽  
Vol 9 (07) ◽  
pp. 1016-1024
Author(s):  
Oladunjoye a ◽  
◽  
Olawale. O. ◽  
Ogbebor b ◽  
Peter. I. ◽  
...  
Keyword(s):  
Capital Structure ◽  
Random Effect ◽  
Fixed Effect Model ◽  
Manufacturing Firms ◽  
Share Price ◽  
P Value ◽  
Price Performance ◽  
Effect Model ◽  
Debt Finance ◽  
Equity Ratio

This study examined the impact of debt equity ratio on the share price performance of manufacturing firms listed in Nigeria between 2010 and 2019. The study adoptedan ex-post facto research design. A sample size of fifteen (15) listed manufacturing firms was used while panel regression models estimated using fixed effect model and random effect model, while the result of the Hausman test was utilized to select the appropriate model between fixed effect model and random effect model.The findings of the study reveals that the total debt to equity ratio is negative and significant influence on performance of share price {Coef. = -0.009 P-value > 0.05}. Return on Assets is also seen to be positive and significantly influence the performance of share price of listed manufacturing firm in Nigeria {Coef = 2.428 P-value = 0.000}. However, Size of firm {Coef. = -0.019 P-value = 0.344} is seen to have negative but insignificant effect on the performance of share price. The study therefore recommended that firm manager should cautious while using debt finance. Firm manager should consider the consequences of debt finance before making capital structure decision. They are supported to identify the optimum debt level and ensure that they are no use excessive amount of debt in capital structure.

Testing the Relationship between Liquidity and Stock Returns in the Palestinian Banks Listed in the Palestine Exchange

GIS Business ◽  
1970 ◽  
Vol 13 (3) ◽  
pp. 23-30
Author(s):  
Marwan Jumah Darwish
Keyword(s):  
Stock Returns ◽  
Turnover Rate ◽  
Fixed Effect Model ◽  
Fixed Effect ◽  
Correlation Test ◽  
Positive Correlation ◽  
Effect Model ◽  
Two Measures ◽  
Liquidity Measures ◽  
The Relationship

This study examines the relationship between liquidity and stock returns in the Palestinian banks listed in the Palestine Exchange over the period July 2009–July 2018. The study uses three liquidity measures: trading probability (TP), turnover rate (TR), and the measure of Amihud (2002), ILLIQ. The results of Pearson’s correlation test showed a positive correlation between tow liquidity measures (TP and ILLIQ) and stock returns, and the results of fixed-effect model showed a significant effect for the same tow liquidity measures (TP and ILLIQ) on stock returns. So, in the context of Palestine, TP and ILLIQ seem to appear better measures for liquidity; thus, the investors can use these two measures of liquidity to predict the stock returns of the Palestinian banks.

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