scholarly journals Microeconomics and raw material price on capital structure adjustment through dynamic target in Indonesian textile industries

Accounting ◽  
2021 ◽  
pp. 231-238
Author(s):  
Sunita Dasman ◽  
Erie Febrian ◽  
Sulaeman Nidar ◽  
Aldrin Herwany
Keyword(s):  
Capital Structure ◽  
Stock Exchange ◽  
Raw Material ◽  
Company Size ◽  
Speed Of Adjustment ◽  
Growth Opportunity ◽  
Structure Adjustment ◽  
Dynamic Target ◽  
Textile Industries ◽  
Retained Earnings

This study aims to examine the effects of company-specific macroeconomic fluctuation in raw materials prices on the speed of adjustment through dynamic targeting capital structure on textile companies listed on the Indonesia Stock Exchange during 2012 and the second quarter of 2020. Using panel data regression of the fixed-effect method, we discovered that the speed of adjustment varies in each industry and period. Textile companies listed on the Indonesia Stock Exchange adjust their capital structure through a dynamic target of 53.3% per year. It takes 1 year and 10 months to close the target capital structure. The factors that determine the target capital structure include company size, tangibility, liquidity and growth opportunity, asset utilization, as well as retained earnings. On the other side, factors that contribute to the speed of adjustment include company size, growth opportunity, earnings volatility, asset utilization, retained earnings, distance to the target, and economic growth. Other factors that also affect the speed of adjustment include fluctuations in the prices of cotton and crude oil. The result of this study is expected to provide an optimal capital structure formulation to the textile industries in Indonesia to finance companies’ operational activities and growth opportunities effectively. This study also provides an overview of how textile companies make capital structure adjustment, as there are changes in company-specific factors, macroeconomic conditions, and fluctuation in raw material prices.

Effect of Profitability, Company Size, Capital Structure, and Liquidity Risk on Firm Value of Indonesian Banks

2021 ◽  
Vol 4 (1) ◽  
pp. 14-27
Author(s):  
Fenty Fauziah ◽  
Rafiqoh Rafiqoh
Keyword(s):  
Capital Structure ◽  
Firm Value ◽  
Stock Exchange ◽  
Linear Regression Analysis ◽  
Sample Selection ◽  
Liquidity Risk ◽  
Share Price ◽  
Company Size ◽  
The Public ◽  
Retained Earnings

The main objective of any firm is to maximize shareholder's wealth, which can be seen from firm value.  This study aims to analyze and explain the effect of profitability, company size, capital structure, and liquidity risk on firm value banking companies in Indonesia. The population of this study is all banking companies listed on the Indonesia Stock Exchange, with an observation period of 2017-2018. The sample selection using a purposive sampling method. Data have both cross-section and time variation. Analysis and hypothesis testing were carried out by using a linear regression analysis using Eviews 11. The results showed that investors viewed that the company's overall profits from its business activities could increase its share price. The capital structure owned by the public relatively small, which meant that the company could provide a source of funds from within the company in the form of the owner's capital or retained earnings. Funds obtained from loans, if they were not followed by the ability to manage funds or were not channeled back to the community, would cause interest expenses and destroy profits. This condition results in investors selling their shares. Investors in making investment decisions paid attention to one indicator at a time and paid attention to all the factors that determined the company's value.

scholarly journals Comparison of Determinants of Capital Structure in Lippo Group and Bakrie Group Companies Listed on the Indonesia Stock Exchange (Partial Adjustment Model Approach)

2021 ◽  
Vol 8 (2) ◽  
pp. 83-88
Author(s):  
Fildzah Fitria ◽  
Khaira Amalia Fachrudin ◽  
Amlys Syahputra Silalahi
Keyword(s):  
Capital Structure ◽  
Stock Exchange ◽  
Company Size ◽  
Group Company ◽  
Partial Adjustment ◽  
Insignificant Effect ◽  
Adjustment Model ◽  
Growth Opportunity ◽  
Partial Adjustment Model ◽  
Model Approach

This study aims to determine the determinants of the capital structure of the Lippo Group and the Bakrie Group listed on the Indonesia Stock Exchange using the partial adjustment model approach. The population in the Lippo Group company is 12 and the population at the Bakrie Group company is 9. The sample of this study is that all companies listed on the Indonesia Stock Exchange are 21 companies. Data analysis used panel data regression method with partial adjustment model approach. The results of the research in the t test at the Lippo Group company show that the lag leverage has a positive and insignificant effect on leverage, profitability has a positive and significant effect on leverage, company size has a positive and insignificant effect on leverage, earning volatility has a positive and significant effect on leverage, assets tangibility has a positive and significant effect on leverage and growth opportunity has a positive and insignificant effect on leverage. The results of the research in the t test at the Bakrie Group company show that the lag leverage has a positive and insignificant effect on leverage, profitability has a positive and insignificant effect on leverage, company size has a positive and insignificant effect on leverage, earning volatility has a positive and insignificant effect on leverage, assets tangibility has a negative and insignificant effect on leverage, growth opportunity has a negative and insignificant effect on leverage. The partial adjustment model test results show that only Lippo Group company on the variables of profitability, earning volatility and assets tangibility have a significant positive effect on leverage. The results of the comparison of the optimal capital structure show that the Bakrie Group has a higher level of optimal capital structure by 83% than the Lippo Group at 55%. Keywords: Lag Leverage, Profitability, Company Size, Earning Volatility, Assets Tangibility, Growth Opportunity, Leverage.

scholarly journals PENCAPAIAN TARGET LEVERAGE MELALUI SPEED OF ADJUSTMENT KARAKTERISTIK PERUSAHAAN

2019 ◽  
Vol 1 (2) ◽  
pp. 131-140
Author(s):  
Yasir Maulana ◽  
Ayus Ahmad Yusuf
Keyword(s):  
Real Estate ◽  
Capital Structure ◽  
Stock Exchange ◽  
Company Size ◽  
Construction Sector ◽  
Speed Of Adjustment ◽  
Growth Industry ◽  
Company Growth ◽  
Target Leverage ◽  
Dynamic Capital Structure

This paper aims to determine the effect of company characteristics on target leverage with the relation of the speed of adjustment to target leverage. The speed of adjustment is examined to complete the analysis of the concept of dynamic capital structure in Indonesia. The characteristics of the companies studied are profitability, company size, company growth, industry, tangibility, inflation and the deficit and financial surplus of companies in the property, real estate and construction sectors listed on the Indonesia Stock Exchange in 2008 to 2015. The results of this study show that property, real estate, and construction sector companies are significantly implementing leverage targets. The data also shows that there is a significant effect of speed of adjustment to the leverage target which is faster when the company has a financial surplus compared to when the financial deficit.

Dynamic target capital structure and speed of adjustment in farm business

2018 ◽  
Vol 46 (4) ◽  
pp. 637-661
Author(s):  
Tamirat S Aderajew ◽  
Andres Trujillo-Barrera ◽  
Joost M E Pennings
Keyword(s):  
Capital Structure ◽  
Adjustment Costs ◽  
Pecking Order ◽  
Speed Of Adjustment ◽  
Growth Opportunity ◽  
Dynamic Target ◽  
The Difference ◽  
General Method Of Moments ◽  
Farm Business ◽  
Leverage Dynamics

Abstract This paper quantifies the determinants and speed of adjustment to the target capital structure for a panel of 1,500 Dutch farms over the years 2001–2015. Using the System General Method of Moments (System-GMM) estimator, the results show that farm profitability, earnings volatility, asset tangibility and growth opportunity are important determinants of leverage. Leverage is highly persistent, i.e. the average adjustment speed is relatively low, with variations among farm types. This variation is mainly attributed to the difference in adjustment costs. Further, we show that the pecking order and signalling theories explain these leverage dynamics.

scholarly journals The Influence Of Company Size, Profitability And Growth Opportunities On Capital Structure

2020 ◽  
Vol 7 (2) ◽  
pp. 162-172
Author(s):  
Yesi Fitri Yuwanita ◽  
Desi Ilona ◽  
Selvi Yona Sari
Keyword(s):  
Capital Structure ◽  
Stock Exchange ◽  
Listed Company ◽  
Control Variable ◽  
Secondary Data ◽  
Sampling Technique ◽  
Company Size ◽  
Panel Data Regression ◽  
Growth Opportunity ◽  
The Capital Structure

The purpose of this study is to determine the effect of company size, profitability and growth opportunity on capital structure. The research object used was a publicly listed company listed on the Indonesia Stock Exchange in 2016-2018. This study uses a random sampling technique in determining research samples. The number of companies selected as samples in this study were 363 companies from 656 publicly listed companies listed on the Indonesia Stock Exchange. The data source used in this study is secondary data. The data analysis method used in this study is panel data regression analysis. The results of this study indicate that simultaneously the size of the company (Size), profitability (ROA) and growth opportunity (GO) with liquidity (CR) as a control variable has a significant effect on capital structure. The size of the company (Size) and growth opportunity (GO) does not significantly influence the capital structure (DER), and profitability (ROA) has a negative and significant effect on the Capital Structure (DER). While liquidity (CR) has a negative and significant effect.

scholarly journals Pengaruh Profitabilitas, Aktiva Berwujud, Ukuran Perusahaan, Pertumbuhan Dan Umur Perusahaan Terhadap Struktur Modal Perusahaan (Studi Empiris Pada Perusahaan Properti Dan Real Estate Yang Terdaftar di Bursa Efek Indonesia)

2021 ◽  
Vol 3 (2) ◽  
pp. 119-138
Author(s):  
Rayhan Fidho Baghaskoro ◽  
Ade Banani ◽  
Najmudin Najmudin
Keyword(s):  
Linear Regression ◽  
Real Estate ◽  
Capital Structure ◽  
Stock Exchange ◽  
Raw Material ◽  
Company Size ◽  
Tangible Assets ◽  
Company Growth ◽  
Analytical Tools ◽  
Positive Effect

The purpose of this study was to analyze the effect of profitability, tangible assets, company size, company growth, and company age toward capital structure in the raw material producing industries listed on the Indonesia Stock Exchange for the period 2012-2016. This study analyzed 17 Property and Real Estate sectors listed on the Indonesia Stock Exchange in year 2013 - 2018 period. The analytical tools used are multiple linear regression and hypothesis testing using t test calculations. The results showed that profitability, company size, company growth and company age had a positive effect on capital structure, while tangible assets did not have a significant effect on capital structure.

scholarly journals Speed of Adjustment Capital Structure

2018 ◽  
Vol 7 (4) ◽  
pp. 516-527
Author(s):  
Ely Yulianita Sibuea ◽  
Arief Yulianto
Keyword(s):  
Capital Structure ◽  
Fixed Effect Model ◽  
Company Size ◽  
Business Risk ◽  
Speed Of Adjustment ◽  
Effect Model ◽  
Structure Adjustment ◽  
Adjustment Speed ◽  
Multiple Regression Method ◽  
Asset Growth

The aim of this study is to analyze the effect of company size variables, asset growth, asset structure and business risk against capital structure adjustment speed with dynamic approach. The number of samples in this study was 63 companies by using purposive sampling method. Multiple regression method with fixed effect model was used as data analysis in this study. The results of this study indicate that company size and asset structure have positive significant effect on capital structure adjustment speed, whereas asset growth has significant negativeeffect on capital structure adjustment speed and business risk does not have significanteffect on capital structure adjustment speed.  

scholarly journals PERBANDINGAN STRUKTUR MODAL PADA PERUSAHAAN PROPERTY DAN KONTRUKSI BANGUNAN PERIODE 2015-2019

2021 ◽  
Vol 9 (1) ◽  
pp. 11-20
Author(s):  
Nialena Yusniawati
Keyword(s):  
Capital Structure ◽  
Foreign Capital ◽  
Stock Exchange ◽  
Building Construction ◽  
Company Size ◽  
Sales Growth ◽  
Construction Companies ◽  
Property Companies ◽  
Retained Earnings ◽  
The Capital Structure

ABSTRACTCapital structure is a comparison of own capital with foreign capital owned by each company. Capital alone can be divided into retained earnings and company ownership. Meanwhile, foreign capital is short-term debt or long-term debt. The good and bad conditions of the company can be determined through the capital structure. Through the capital structure, the company can allocate funds owned for appropriate business activities as well as useful for the continuity of the company. In general, factors that affect the company's capital structure include profitability, liquidity, company size, sales growth, and asset structure.This study aims to find out the different influences of capital structures on property companies and building construction. This research uses property and building construction companies listed on the Indonesia Stock Exchange in 2015-2019.The result of this study profitability affects the capital structure of property companies, while in building construction companies profitability has no effect on the capital structure. Liquidity in property companies affects the capital structure. This is the same as the result of building construction companies where liquidity affects the capital structure. In property companies the size of the company has an influence on the capital structure, as well as building construction companies that the variable size of the company affects the capital structure. Sales growth has an influence on the capital structure in property companies, while building construction companies sales growth has no effect on the capital structure. The structure of the property company's assets affects the capital structure. The same indicates that the asset structure of building construction companies affects the capital structure. The difference in the influence of the capital structure of property companies is influenced by profitability, liquidity, company size, sales growth, and asset structure. For the capital structure of building construction is influenced by liquidity, company size, and asset structure. As for variable profitability and sales growth in building construction companies has no effect on the capital structure. Keywords: Profitability, Liquidity, Company Size, Sales growth, Asset Structure, Capital Structure

scholarly journals DETERMINAN STRUKTUR MODAL DINAMIS : STUDI EMPIRIS DI BURSA EFEK INDONESIA

INOVATOR ◽  
2019 ◽  
Vol 8 (2) ◽  
pp. 1
Author(s):  
Puwanto Widodo
Keyword(s):  
Capital Structure ◽  
Stock Exchange ◽  
Dynamic Panel Data ◽  
Structure Theory ◽  
Method Of Moment ◽  
Trade Off ◽  
Speed Of Adjustment ◽  
Growth Opportunity ◽  
Analytical Tools ◽  
Dynamic Capital Structure

<p><em>Research on dynamic capital structure basically wants to know the existence of targeted leverage as hypothesized by Trade-Off Theory and Speed off Adjustment (SOA). Later developments, the magnitude of the speed of adjustment can be used as a determinant of capital structure theory used by the company. Another problem in dynamic capital structure research is the use of analytical tools that can produce biased and inconsistent predictors. To overcome this, this study uses dynamic panel data with the General Method of Moment (GMM) approach. Samples were taken from non-financial companies listed on the Indonesia Stock Exchange in the 2009-2015 period. The results of the inference show the existence of Dynamic Trade Off Theory and the variables of company characteristics and macroeconomic significantly influence the dynamic capital structure. In addition, it is known that there is an influence of company size and growth Opportunity on the speed of adjustment. Another finding is that he knows that managing profitability follows and Pecking Order Theory.Keyword</em><em>s</em><em> : capital structure, static model, dynamic model</em></p>

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

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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