scholarly journals DETERMINANTS AFFECTING THE CAPITAL STRUCTURE DECISION OF A FIRM (A CASE STUDY OF TEXTILE SECTOR IN PAKISTAN)

2021 ◽  
Vol 3 (3) ◽  
pp. 118-133
Author(s):  
SADDAM HUSSAIN ◽  
Chunjiao Yu ◽  
Xiao Ling
Keyword(s):  
Capital Structure ◽  
Firm Growth ◽  
Stock Exchange ◽  
Secondary Data ◽  
Balance Sheets ◽  
Return On Equity ◽  
Leverage Ratio ◽  
Equity Ratio ◽  
Specific Factors ◽  
Textile Sector

In this paper, we have examined the influence of specific factors based on a capital structure sample of five Pakistani textile sector (Leveraged) companies. The secondary data came from an analysis of the balance sheets of five companies listed on the Karachi Stock Exchange between 2004 and 2014.Regression and correlation analysis on the panel data shows that profitability is negatively correlated with leverage ratio, while tangibility is positively correlated with leverage ratio, but not significantly. Firm size and firm growth are also positively and significantly correlated with leverage. Return on equity is also negatively correlated with leverage. Our findings also show that large textile firms, compared with small ones, finance long-term through debt. Keywords: Capital Structure, Return on equity, Profitability, Tangibility, Leverage, Debt to equity ratio, Pakistan.

scholarly journals Pengaruh Struktur Modal Terhadap Profitabilitas (Studi Pada Perusahaan Pertambangan Yang Terdaftar di Bursa Efek Indonesia Periode 2011-2015)

2018 ◽  
Vol 3 (3) ◽  
pp. 89-98
Author(s):  
Mitha Rahma Fauzan ◽  
Mukaram
Keyword(s):  
Regression Analysis ◽  
Capital Structure ◽  
Stock Exchange ◽  
Linear Regression Analysis ◽  
Secondary Data ◽  
Multiple Linear Regression Analysis ◽  
Two Dimensions ◽  
Return On Assets ◽  
Return On Equity ◽  
Equity Ratio

Capital structure is one of the issue that attract many researchers in the field of finance and an important issue for any company because of its capability to directly effect on companies’ financial position. This study aims to determine the effect of debt to equity ratio (DER) and debt to assets ratio (DAR) as the dimension of capital structure to return on equity (ROE) and return on assets (ROA) as dimensions of company profitability ratios, either simultaneously or partially on mining companies listed in Indonesia Stock Exchange period 2011-2015. This research was conducted by using multiple linear regression analysis and yielded two equations of regression model. The data obtained are secondary data using documentation method. The result of regression analysis shows that the two dimensions of capital structure have significant effect to both dimensions of profitability simultaneously. While partially, only DAR which have a significant effect on the ROE and ROA.

scholarly journals Capital structure and profitability: the case of Nigerian deposit money banks

2020 ◽  
Vol 15 (4) ◽  
pp. 221-228
Author(s):  
Adegbola Olubukola Otekunrin ◽  
Tony Ikechukwu Nwanji ◽  
Damilola Eluyela ◽  
Johnson Kolawole Olowookere ◽  
Damilola Gabriel Fagboro
Keyword(s):  
Capital Structure ◽  
Stock Exchange ◽  
Negative Relationship ◽  
Secondary Data ◽  
Annual Reports ◽  
Internal Source ◽  
Leverage Ratio ◽  
Optimal Mix ◽  
Equity Ratio ◽  
Retained Earnings

This paper aimed to empirically examine the extent to which capital structure impacts the profitability of Nigerian Deposit Money Banks considering the profitability of eight Nigerian Deposit Money Banks from 2003 to 2018 (16 years). A descriptive research design was adopted for this study, and data were analyzed using regression. The study used secondary data obtained from published annual reports of selected Nigerian Deposit Money Banks on the Nigerian Stock Exchange (NSE) for four years (2003–2018). The study concluded that the indicators used to measure capital structure (debt-equity ratio and leverage ratio) and profitability (returns on equity) had a negative relationship. This means that the use of debts mixed with equity (debt-equity ratio and leverage ratio) in improper proportion as financing methods can negatively affect profitability. Hence, there is a need to identify the optimal mix of capital structure (debts mixed with equity) that maximizes profitability, as well as firm and shareholder value with minimum agency costs as suggested by the trade-off theory and agency theory, respectively. The alternative is to give preference to retained earnings (internal source of finance) as funding source. AcknowledgmentAll researchers and non-researchers that contributed to this paper are highly appreciated.

scholarly journals Determinan Nilai Perusahaan Pada Subsektor Makanan Dan Minuman Periode 2016-2018

2020 ◽  
Vol 8 (3) ◽  
pp. 239-248
Author(s):  
Jessica Bintang Glory ◽  
Fitri Yetty ◽  
Nunuk Triwahyuningtyas
Keyword(s):  
Capital Structure ◽  
Stock Exchange ◽  
Secondary Data ◽  
Company Size ◽  
Sample Collection ◽  
Return On Equity ◽  
Company Value ◽  
Data Regression ◽  
Food And Beverage ◽  
Equity Ratio

The purpose of this research is to examine the influence of capital structure with the calculation of Debt Equity Ratio (DER), Profitability with the proxy of Return On Equity (ROE) and Company Size with the proxy of Size calculations on the company's value with the calculation of Price Book Value (PBV) of the company's food and beverage subsectors listed on the Indonesia Stock Exchange. The data used is secondary data with a sample collection method using purposive sampling. Where the population of this study used is the food and beverage subsectors company listed on the Indonesia Stock exchange with a period of observation 2016 – 2018, with the final samples of research 12 companies selected. Data analysis techniques are conducted using descriptive statistics and data regression analysis panels with the help of E-Views version 10 and Microsoft Excel applications 2013. The results of the research are partially known that the company structure (DER) affects on the company's value (PBV), profitability (ROE) affects the company’s value and the Company Size has no effects to the company's value. As well as independent variables explain the dependent variable by 91.76%   Keywords: Capital Structure, Profitability, Company Size and Company Value

scholarly journals Analisis Kinerja Rentabilitas Dan Solvabilitas Sektor Kosmetik Dan Rumah Tangga (Studi Kasus Perusahaan Yang Terdaftar Di Bursa Efek Indonesia)

2019 ◽  
Vol 10 (2) ◽  
pp. 104-111
Author(s):  
Ima Halimah ◽  
Nor Norisanti ◽  
Faizal Mulia Z
Keyword(s):  
Capital Structure ◽  
Stock Exchange ◽  
Secondary Data ◽  
Financial Statements ◽  
Return On Equity ◽  
Average Value ◽  
Industry Standard ◽  
Equity Ratio ◽  
Descriptive Method

This study discusses the analysis of capital structures that measure profitability and solvability in cosmetic companies listed on the Indonesia Stock Exchange. This research uses descriptive method, the data used secondary data consisting of financial statements of cosmetics companies for the period 2015 to 2017. Using horizontal analysis for capital structure, return on equity (ROE), debt to equity ratio (DER), long term debt to equity ratio (LTDtER) and uses industry standard averages. The results show that PT Unilever Indonesia Tbk can exceed the average value of the industry standard and the value generated for returns on equity, debt to equity ratio, and long-term debt to equity ratio the higher compared to other cosmetic companies. Companies with returns on equity, debt to equity ratios and long-term debt-to-equity ratios that obtain low scores are PT. Kino Indonesia Tbk and PT. Mustika Ratu Tbk because the value obtained cannot always be obtained by the industry standard average value. Keyword : Capital Structure, Returns On Equity, Debt To Equity Ratios, Long Term Debt To Equity Ratios

scholarly journals The effect of capital structure, institutional ownership, managerial ownership, and profitability on company value in manufacturing companies

2019 ◽  
Vol 9 (1) ◽  
pp. 27
Author(s):  
Jhonatan Trafalgar ◽  
Laely Aghe Africa
Keyword(s):  
Capital Structure ◽  
Stock Exchange ◽  
Linear Regression Analysis ◽  
Secondary Data ◽  
Institutional Ownership ◽  
Managerial Ownership ◽  
Manufacturing Companies ◽  
Return On Equity ◽  
Company Value ◽  
Equity Ratio

This study aimed to examine the effect of capital structure, institutional ownership, managerial ownership, and profitability on company value. It used independent variables such as capital structure with a proxy of Debt to Equity Ratio (DER), institutional ownership, managerial ownership, and profitability with a proxy of Return on Equity (ROE), and the dependent variable such as company value. This study uses secondary data obtained from the Indonesia Stock Exchange (IDX) for the period 2014-2017, with the population of all manufacturing companies listed on the Indonesia Stock Exchange (IDX) with the sample of manufacturing companies in the sector of various industries in the period 2014-2017. It was taken by using purposive sampling method, where they were selected based on the criteria. The data were analyzed using a multiple linear regression analysis with SPSS 23. The results indicated that the Debt to Equity Ratio (DER), institutional ownership, and managerial ownership have no significant effect on company value, while Return on Equity (ROE) has a significant effect on company value. The company's goal can be achieved if the company's performance is able to optimize the value of the company.

scholarly journals ANALYSIS OF CAPITAL STRUCTURE IN MEASURING RENTABILITY AND SOLVABILITY OF COSMETICS COMPANIES AND HOUSE HOLD GOODS LISTED ON INDONESIA STOCK EXCHANGE PERIOD 2015-2017

2019 ◽  
Vol 7 (2) ◽  
pp. 150-158
Author(s):  
Ima Halimah ◽  
Nor Norisanti ◽  
Faizal Mulia Z
Keyword(s):  
Capital Structure ◽  
Financial Performance ◽  
Stock Exchange ◽  
Balance Sheet ◽  
Secondary Data ◽  
Financial Reports ◽  
Return On Equity ◽  
Earnings Per Share ◽  
Equity Ratio

The purpose of this research to measure capital structure of cosmetics companies and house hold goods listed on the Indonesia Stock Exchange for the period 2015-2017 using vertical analysis, return on equity (ROE), earnings per share (EPS), debt on equity ratio (DER), and Long-Term Debt on Equity Ratio (LTDtER). This research uses descriptive methods, secondary data used is company documentation and financial reports in the form of balance sheet PT.Akasha Wira International Tbk, PT. Kino Indonesia Tbk, PT.Mandom Indonesia Tbk, PT. Martina Berto Tbk, PT. Mustika Ratu Tbk and PT. Unilever Indonesia Tbk in 2015 until 2017. The results showed that the perfomance of cosmetics companies and house hold goods reduction in 2015 until 2017 the form of Return on Equity (ROE) and increase in Debt on Equity Ratio (DER) and also fluctuations in Long-Term Debt on Equity Ratio (LTDtER). PT. Kino Indonesia and PT. Mustika Ratu are companies with financial performance whose capital structure management is not optimal due to the composition and proportion of long-term debt with equity that is not balanced with the returns and risks borne by the company during the 2015 to 2017 period. Keywords: Capital Structure, Return on Equity (ROE), Earnings Per Share (EPS), Debt on Equity Ratio (DER), Long-Term Debt on Equity Ratio (LTDtER

scholarly journals Pengaruh Struktur Modal Terhadap Profitabilitas (Studi Pada Perusahaan Pertambangan Yang Terdaftar di Bursa Efek Indonesia Periode 2011-2015)

2018 ◽  
Vol 3 (3) ◽  
pp. 89
Author(s):  
Mitha Rahma Fauzan ◽  
Mukaram Mukaram
Keyword(s):  
Regression Analysis ◽  
Capital Structure ◽  
Stock Exchange ◽  
Linear Regression Analysis ◽  
Secondary Data ◽  
Multiple Linear Regression Analysis ◽  
Two Dimensions ◽  
Return On Assets ◽  
Return On Equity ◽  
Equity Ratio

Capital structure is one of the issue that attract many researchers in the field of finance and an important issue for any company because of its capability to directly effect on companies’ financial position. This study aims to determine the effect of debt to equity ratio (DER) and debt to assets ratio (DAR) as the dimension of capital structure to return on equity (ROE) and return on assets (ROA) as dimensions of company profitability ratios, either simultaneously or partially on mining companies listed in Indonesia Stock Exchange period 2011-2015. This research was conducted by using multiple linear regression analysis and yielded two equations of regression model. The data obtained are secondary data using documentation method. The result of regression analysis shows that the two dimensions of capital structure have significant effect to both dimensions of profitability simultaneously. While partially, only DAR which have a significant effect on the ROE and ROA. Struktur modal merupakan salah satu isu yang menarik banyak peneliti di bidang keuangan dan isu penting bagi perusahaan karena kemampuan struktur permodalan untuk mempengaruhi secara langsung posisi finansial perusahaan tersebut. Penelitian ini bertujuan untuk mengetahui pengaruh rasio hutang terhadap ekuitas (DER) dan rasio hutang terhadap asset (DAR) sebagai dimensi struktur modal terhadap return on equity (ROE) dan return on assets (ROA) sebagai dimensi rasio profitabilitas perusahaan, baik secara simultan maupun parsial pada perusahaan pertambangan yang terdaftar di Bursa Efek Indonesia periode 20112015. Penelitian ini dilakukan dengan menggunakan analisis regresi linier berganda dan menghasilkan dua persamaan model regresi. Data yang diperoleh adalah data sekunder dengan menggunakan metode dokumentasi. Hasil analisis regresi menunjukkan bahwa kedua dimensi struktur modal berpengaruh signifikan terhadap kedua dimensi profitabilitas secara simultan. Sementara sebagiannya, hanya dimensi DAR yang menunjukkan pengaruh signifikan terhadap dimensi ROE dan ROA.

scholarly journals Analisis Kinerja Rentabilitas Dan Solvabilitas Sektor Kosmetik Dan Rumah Tangga (Studi Kasus Perusahaan Yang Terdaftar Di Bursa Efek Indonesia)

2019 ◽  
Vol 10 (2) ◽  
pp. 104-111
Author(s):  
Ima Halimah ◽  
Nor Norisanti ◽  
Faizal Mulia Z
Keyword(s):  
Capital Structure ◽  
Stock Exchange ◽  
Secondary Data ◽  
Financial Statements ◽  
Return On Equity ◽  
Average Value ◽  
Industry Standard ◽  
Equity Ratio ◽  
Descriptive Method

This study discusses the analysis of capital structures that measure profitability and solvability in cosmetic companies listed on the Indonesia Stock Exchange. This research uses descriptive method, the data used secondary data consisting of financial statements of cosmetics companies for the period 2015 to 2017. Using horizontal analysis for capital structure, return on equity (ROE), debt to equity ratio (DER), long term debt to equity ratio (LTDtER) and uses industry standard averages. The results show that PT Unilever Indonesia Tbk can exceed the average value of the industry standard and the value generated for returns on equity, debt to equity ratio, and long-term debt to equity ratio the higher compared to other cosmetic companies. Companies with returns on equity, debt to equity ratios and long-term debt-to-equity ratios that obtain low scores are PT. Kino Indonesia Tbk and PT. Mustika Ratu Tbk because the value obtained cannot always be obtained by the industry standard average value. Keyword : Capital Structure, Returns On Equity, Debt To Equity Ratios, Long Term Debt To Equity Ratios

Pengaruh Faktor Fundamental, Risiko Sistematis Dan Ekonomi Makro Terhadap Return Saham Syariah Yang Tergabung Di Jakarta Islamic Index (JII) Pada Periode 2010 – 2014

2017 ◽  
Vol 24 (1) ◽  
pp. 54-70
Author(s):  
Hasanah Setyowati ◽  
Riyanti Ningsih
Keyword(s):  
Exchange Rate ◽  
Stock Exchange ◽  
Systematic Risk ◽  
Secondary Data ◽  
Analysis Model ◽  
Macroeconomic Factors ◽  
Return On Equity ◽  
Equity Ratio ◽  
Regression Techniques ◽  
The Exchange Rate

This study aimed to obtain empirical evidence on the influence of fundamental factors, systematic risk and macroeconomics on the returns Islamic stock of companies incorporated in the Jakarta Islamic Index in 2010-2014. The variables used were the fundamental factors that are proxied by Earning Per Share (EPS), Return on Equity (ROE), Debt to Equity Ratio (DER); Systematic risk is proxied by Beta Shares; macroeconomic factors is proxied by the inflation rate and the exchange rate. The samples of this study are the enterprises incorporated in Jakarta Islamic Index (JII) at the Indonesian Stock Exchange. The sampling method was using purposive sampling. There were 12 samples of Islamic stocks that meet the criteria to be used as samples. The analysis model used is multiple linear regression techniques and the type of data used is secondary data. The study found that all variables, which are Earning Per Share (EPS), Return on Equity (ROE), Debt to Equity Ratio (DER), Beta stock, inflation and the exchange rate do not significantly affect the return of sharia stock either simultaneously or partially.

PENGARUH RASIO KEUANGAN TERHADAP PENCAPAIAN LABA PERUSAHAAN KELOMPOK INDUSTRI MAKANAN YANG TERDAFTAR DI BURSA EFEK INDONESIA

2016 ◽  
Vol 4 (1) ◽  
Author(s):  
Akhmad Sodiqin
Keyword(s):  
Stock Exchange ◽  
Fixed Effect ◽  
Current Ratio ◽  
Return On Equity ◽  
Leverage Ratio ◽  
Food Industries ◽  
Equity Ratio ◽  
Turn Over

The aims of this research are to know influence of finacial ratios which consisted of Current ratio, Debt equity ratio, Leverage ratio, Inventory turn over, and total assets turn over to return on equity simultanously and to know influence of finacial ratios which consisted of Current ratio, Debt equity ratio, Leverage ratio, Inventory turn over, and total assets turn over to return on equity partially. Data was analyzed used fixed effect model.Data which collected for 3 years from 2011 until 2013 comes 8 firms in food industries listed in Indonesian Stock Exchange (IDX). Based on data analyzed was known that finacial ratios which consisted of Current ratio, Debt equity ratio, Leverage ratio, Inventory turn over, and total assets turn over to didn’t influence to return on equity simultanously and finacial ratios which consisted of Current ratio, Leverage ratio, Inventory turn over, and total assets turn over didn’t inluence to return on equity partially but debt equity ratio influence significantly to return on equity.

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