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.

Financing Decisions and Performance of Italian SMEs in the Hotel Industry

2018 ◽  
Vol 60 (4) ◽  
pp. 335-354 ◽  
Author(s):  
Marco Botta
Keyword(s):  
Capital Structure ◽  
Financial Performance ◽  
Optimal Level ◽  
Pecking Order ◽  
Optimal Capital Structure ◽  
Financing Decisions ◽  
Medium Enterprise ◽  
Optimal Capital ◽  
And Performance ◽  
The Relationship

This study investigates the existence of an optimal capital structure for small and medium enterprise (SME) hotels through the analysis of the relationship between financing decisions and financial performance in a large sample of Italian hotel SMEs. The results show that hotel SMEs face an optimal capital structure that allows them to maximize returns to investors, while instead having both too little and too much debt reduces their financial performance. This notwithstanding, we show that hotel SMEs are not particularly concerned with optimizing their capital structure, and their funding behavior is deeply connected with the availability of internally available funds, a typical pecking order behavior, and they result extremely slow in converging toward their optimal level of leverage so that they could improve their performance by adopting a more sophisticated financial strategy.

scholarly journals The Moderating Role of Debt Financing on the Relationship Between Leverage and Performance: An Empirical Analysis of the Textile Sector of Pakistan

2018 ◽  
Vol 2 (1) ◽  
pp. 01-15
Author(s):  
Ummara Fatima
Keyword(s):  
Capital Structure ◽  
Textile Industry ◽  
Debt Financing ◽  
Debt Ratio ◽  
Optimal Capital Structure ◽  
Effect Model ◽  
Optimal Capital ◽  
And Performance ◽  
The Relationship ◽  
Textile Sector

The study examines how debt financing affects the leverage and performance relationship of the textile sector of Pakistan. The study also strives to elaborate the determinants of debt financing. Data has been collected from the annual reports of the textile companies listed at Pakistan Stock Exchange (PSE) for the years 2010-2015. Panel data techniques including Pooled OLS, Fixed Effect model, Random Effect model, and Moderated Panel Regression model were used for estimating the relationship between debt ratio, leverage and company-specific variables such as profitability and size. The results depict that the listed textile companies of Pakistan financed more than half of its assets by external borrowing. There is high asset tangibility in the Pakistani textile industry. The tax shield, which is the alternative of depreciation, is limited for the textile firms of Pakistan (Qamar, Farooq, Afzal & Akhtar, 2016). The independent variables’ interaction term with debt ratio shows a positive relationship with ROA other than asset tangibility. The trade-off theory suggests to follow a targeted optimal capital structure which is more favorable for a firm. Pakistani textile industry should adopt the model of optimal capital structure for balancing the costs and benefits.

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.

Optimal capital structure in agricultural cooperatives and implications for equity retirement

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jeffrey Royer ◽  
Gregory McKee
Keyword(s):  
Interest Rate ◽  
Capital Structure ◽  
Financial Statements ◽  
Rate Of Return ◽  
Content Type ◽  
Optimal Capital Structure ◽  
Return On Capital ◽  
Optimal Capital ◽  
The Interest Rate ◽  
The Relationship

PurposeThis paper presents a model for determining the optimal capital structure for cooperatives and explores the relationship between financial leverage and the ability of cooperatives to retire member equity.Design/methodology/approachA model is developed to determine the optimal capital structure and explore the relationship between capital structure and the rate at which a cooperative can retire member equity. Using data from cooperative financial statements, ordinary least-squares regressions are conducted to test two hypotheses on capital structure and equity retirement.FindingsThe model shows that the optimal capital structure is determined by the ratio of the rate of return on capital employed to the interest rate on borrowed capital and the required level of interest coverage. The regressions suggest that cooperatives choose their capital structure largely according to the rate of return on capital employed and the interest rate in a manner consistent with maximizing the rate of return on equity and that the rate at which cooperatives can retire member equity is directly related to leverage.Research limitations/implicationsThe model does not consider unallocated earnings. Analysis of the relationship between leverage and equity retirement yields results contrary to the assumptions of earlier studies.Practical implicationsCooperatives can use the model because the necessary parameters are easily understood and readily available from financial statements, lenders and industry sources.Originality/valueThe model is developed specifically for determining the capital structure of cooperatives and differs substantially from the corporate model. A theoretical basis is provided for the relationship between leverage and equity retirement.

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 Determinan Struktur Modal Pada Perusahaan LQ45 Yang Terdaftar Di Bursa Efek Indonesia Periode Tahun 2011-2015

2017 ◽  
Vol 1 (1) ◽  
pp. 14-25
Author(s):  
Mochamad Fatikhudin
Keyword(s):  
Capital Structure ◽  
Firm Size ◽  
Capital Market ◽  
Sampling Method ◽  
Stock Exchange ◽  
Secondary Data ◽  
Total Sample ◽  
Negative Influence ◽  
Sales Growth ◽  
Independent Variable

The purpose of this research is to determine the effect of profitability, liquidity, sales growth, and the firm size in a partial and simultaneous to capital structure in LQ45 company. The population in this study is LQ45 companies listed on the Indonesian Stock Exchange period 2011-2015. This research is use purposive sampling method, and get the total sample of 21 companies. The data used is secondary data derived from Annual Report and Indonesian Capital Market Directory (ICMD). Data analysis that use in this research is multiple regrestion. Result of this research showed profitability has a negative influence to capital structure. Although liquidty profitability where as the variable of liquidity, growth of sales and firm size are not influential to capital structure. Simultatily the profitability, liquidity, growth of sales and firm size are influencial to capital structure. The amount of adjusted R square is 0,239 it means 23,9 percentage dependent variable of capital structure can be explained by four independent variable, they are profitability, liquidity, growth of sales, and firm size, but 76,1 percentage capital structure explained by other variable outside (node).

scholarly journals Financial Decision, Innovation, Profitability and Company Value: Study on Manufacturing Company Listed in Indonesian Stock Exchange

2015 ◽  
Vol 7 (2) ◽  
pp. 72-78
Author(s):  
Mursalim Mursalim ◽  
Nur Alamzah . ◽  
Abdullah Sanusi .
Keyword(s):  
Capital Structure ◽  
Capital Market ◽  
Dividend Policy ◽  
Stock Exchange ◽  
Investment Decision ◽  
Secondary Data ◽  
Financial Decisions ◽  
Company Value ◽  
Financial Decision ◽  
The Relationship

This study aims to describe the relationship between financial decisions, innovation, enterprise profitability and the value of the company. Based on the research objectives, this research is a causality research. The data used are secondary data for a 5-years period, obtained through several sources such as Indonesian Capital Market Directory (ICMD) and the websites of 22 companies. The results show that (1) Investment decision affects company profitability positively and significantly, (2) Investment decision affects company value positively and significantly, (3) Capital structure affects company profitability positively and significantly, (4) Capital structure affects company value positively and significantly, (5) Dividend policy affects company profitability positively and significantly, (6) Dividend policy does not affect company value, (7) Innovation affects company profitability positively and significantly, (8) Innovation affects company value positively and significantly, and (9) Profitability affects company value positively and significantly.

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 THE ANALYSIS OF COMPANY'S CAPITAL AND EVALUATION OF FACTORS, WHICH INFLUENCE CREATION OF THE OPTIMAL CAPITAL STRUCTURE

2006 ◽  
Vol 7 (3) ◽  
pp. 147-153 ◽  
Author(s):  
Svetlana Saksonova
Keyword(s):  
Capital Structure ◽  
Process Analysis ◽  
Successful Operation ◽  
Internal Factors ◽  
Optimal Capital Structure ◽  
Optimal Capital ◽  
Main Factors ◽  
Two Stages ◽  
The Relationship ◽  
Over Time

In this article, the author will outline several stages of the process of determining optimal capital structure and will concentrate in particular on the first two stages of this process – analysis of company's borrowed capital and equity as well as the evaluation of the main factors, which influence capital structure. It is important to stress these preparatory stages, because successful operation of the company is built on properly understanding the relationship between risk and potential reward that is inherent in different alternatives of capital structure. These stages stress the importance of gathering reliable financial information about the company (enabling calculation of the ratios mentioned in the article) and performing risk analysis (relying in part on the external and internal factors described in the article) in order to decide on the optimal capital structure. The author cautions that rapid economics growth in Latvia will at least slow down over time. Managers need to take that into account, when planning capital structure and therefore avoid increasing their leverage to dangerous levels.

scholarly journals The Nexus Between Capital Structure And Firms’ Profitability: Evidence From Oil & Gas Sector of Pakistan

2019 ◽  
Vol 13 (1) ◽  
pp. 109-124
Author(s):  
Sobia Shafaq Shah ◽  
Shafeeq Ahmed Pitafi ◽  
Arjumand Soomro
Keyword(s):  
Capital Structure ◽  
Quantitative Research ◽  
Correlation Coefficients ◽  
Secondary Data ◽  
Research Approach ◽  
Clear Understanding ◽  
Optimal Capital Structure ◽  
Return On Capital ◽  
Optimal Capital ◽  
The Capital Structure

The optimal capital structure is conceptualized as a basic framework pertinent to acquiring, utilizing, and contributing financial resources of the organization. The estimation and maintenance of the capital structure of a firm are the integral managerial decisions that could ultimately affect the future of the organizations. No doubt, the potential of profitability is the first thing for its future growth and to inculcate a sense of confidence among investors to invest in the firms. This study aims at examining the nexus between capital structure and profitability of firms in the context of the Oil & Gas sector of Pakistan. The sample of this research is comprised of the top five top-performing firms of the Oil & Gas sector for a period of ten years (2006-2015). Keeping in view the explanatory orientation of this research, quantitative research approach was employed. In order to achieve study objectives, the secondary data were extracted from the financial statements of the firms under study and data were analyzed through descriptive statistics and correlation coefficients. During data analysis, the profitability of the firm was measured in terms of Gross Profit Ratio (GPR), Return on Capital Employed (ROCE) and Return on Equity (ROE). Whereas, the capital structure was measured in terms of Debt to Equity (D/E) ratio and Debt to Total Funds (D/TF) ratio. The findings drawn from this study revealed a negative linkage among various dimensions of the capital structure of firms and their profitability potential in the context of the Oil & Gas sector of Pakistan. Primarily, this study findings corroborated that sample firms under study brought sudden changes in the composition of their debt and equity mix (capital structure) that significantly threatened the profitability of firms. The study suggests that selected firms understudy the need to adopt consistent capital structure policies with a clear understanding of future profitability. Financial managers need to focus on developing prudent optimal capital structure and avoid making abrupt changes in the debt and equity mix of firms.  

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