Co-determination of Capital Structure and Profitability: An Empirical Test of Indonesia Stock Exchange

2020 ◽  
Vol 19 (3) ◽  
pp. 561-575
Author(s):  
Teddy Chandra ◽  
Stefani Chandra ◽  
Evelyn Wijaya ◽  
Jenifer Chandra ◽  
Martha Ng
Keyword(s):  
Capital Structure ◽  
Stock Exchange ◽  
Empirical Test

scholarly journals An Empirical Test of Capital Structure Theories for the Vietnamese Listed Firms

2019 ◽  
Vol 12 (3) ◽  
pp. 148 ◽  
Author(s):  
Nguyen ◽  
Ho ◽  
Vo
Keyword(s):  
Capital Structure ◽  
Stock Exchange ◽  
Empirical Test ◽  
Empirical Studies ◽  
Order Theory ◽  
Asia Pacific ◽  
Method Of Moment ◽  
Pecking Order Theory ◽  
Factors Affecting ◽  
Listed Firms

Raising capital efficiently for the operations is considered a fundamental decision for any firms. Since the 1960s, various theories on capital structure have been developed. Various empirical studies had also been conducted to examine the appropriateness of these theories in different markets. Unfortunately, evidence is mixed. In the context of Vietnam, a rising powerful economy in the Asia Pacific region, this important issue has been largely ignored. This paper is conducted to provide additional evidence on this important issue. In addition, different factors affecting the capital structure decisions from the Vietnamese listed firms are examined. The Generalized Method of Moment approach is employed on the sample of 227 listed firms in Ho Chi Minh City stock exchange over the period from 2008 to 2017. Findings from this study suggest that the Vietnamese listed firms follow the trade-off theory to determine their capital structure (i.e., to determine the optimal debt level). In contrast, no evidence has been found to confirm that the pecking order theory can explain the financing decisions of the Vietnamese listed firms, as previously expected. In addition, findings from this study also indicate that ‘Fund flow deficit’ and ‘Change in sales’ are the most two important factors that affect the amount of debt issued for the Vietnamese listed firms. Implications for academics, practitioners, and the Vietnamese government have also been emerged from the findings of this paper.

scholarly journals THE DETERMINANTS OF FIRM’S CAPITAL STRUCTURE: EVIDENCE OF SHARIAH AND NON-SHARIAH STOCK COMPANIES IN INDONESIA

El Dinar ◽  
2015 ◽  
Vol 3 (2) ◽  
Author(s):  
Choirul Nikmah ◽  
Suhadak Suhadak ◽  
Kertahadi Kertahadi ◽  
Hsien- Hung Yeh
Keyword(s):  
Capital Structure ◽  
Stock Exchange ◽  
Negative Influence ◽  
Font Size ◽  
Industry Type ◽  
Industry Effect ◽  
Specific Factors

<h1><em style="font-size: 10px;">Abstract</em></h1><p><em>This research investigates the determinants of capital structure for firms in Indonesia from the perspective of Shariah and non-Shariah stocks. The research was conducted using 222 non financial companies that listing in Indonesia Stock Exchange (IDX) during the period of 2007 to 2012. This study tested using multiple linier regressions with panel data.The results show that firm-specific factors such as profitability and tangibility have significant negative influence on capital structure. There is no direct industry effect on capital structure but the interaction between industry type and Shariah and non-Shariah stocks do affect the determination of capital structure. In addition, the interaction between firm-specific factors and Shariah and non-Shariah stocks affects capital structure of firms in Indonesia. </em></p>

scholarly journals Variabel – Variabel Yang Mempengaruhi Struktur ModalPada Perusahaan Manufaktur Di Bursa Efek Indonesia

2020 ◽  
Vol 1 (1) ◽  
pp. 28-41
Author(s):  
Kurnia Murni Utami ◽  
Diana Dwi Astuti ◽  
Hamzah Fansuri Yusuf
Keyword(s):  
Capital Structure ◽  
Sampling Method ◽  
Stock Exchange ◽  
Linear Regression Analysis ◽  
Multiple Linear Regression Analysis ◽  
Manufacturing Companies ◽  
Independent Variables ◽  
Operating Leverage ◽  
Research Period

This study aims to determine the effect of  simultaneous and partial variables of sales stability, asset structure, operating leverage, company size, and profitability on capital structure in manufacturing companies on the Indonesia Stock Exchange. Research period 2014 - 2018. Determination of the sample by purposive sampling method. Using the method of multiple linear regression analysis. The results of the classic assumptions of the study, showed that normally distributed, no multicollinearity, no symptoms of heteroscedasticity, and no autocorrelation. The results of multiple regression, show the independent variables simultaneously influence the dependent variable. Partially, the variables of sales stability, operating leverage and firm size have a significant effect on capital structure, while asset structure and profitability have no significant effect on capital structure.

scholarly journals Pengaruh Likuiditas, Struktur Aktiva dan Risiko Bisnis Terhadap Struktur Modal (Studi Empiris pada Perusahaan Property dan Real Estate di Bursa Efek Indonesia)

2021 ◽  
pp. 188-199
Author(s):  
Nurul Qosidah ◽  
Fitri Romadhon
Keyword(s):  
Real Estate ◽  
Capital Structure ◽  
Stock Exchange ◽  
Linear Regression Analysis ◽  
Multiple Linear Regression Analysis ◽  
Point Of View ◽  
Business Risk ◽  
Structure Property ◽  
Research Population

The purpose of this study is to examine the role of the liquidity ratio, asset structure andbusiness risk in influencing the determination of capital structure. Property and real estate companies on the Indonesia Stock Exchange in 2016-2018 were employed as the research population, and obtained 39 companies as research samples. This study uses multiple linear regression analysis for hypothesis testing. The results of this study validate prior studies that test liquidity, asset structure and business risk, where liquidity and asset structure have an influence on the determination of capital structure. These results, especially in the asset structure proved consistent, although in this study the asset structure was considered from the point of view of the company's ability to manage current assets and fixed assets as determinants of capital structure. However, this study failed to prove that business risk can affect the capital structure. Keywords: Liquidity, Asset Structure, Business Risk,and Capital Structure  

scholarly journals PENGARUH STRUKTUR MODAL DAN PERUBAHAN LABA TERHADAP NILAI PERUSAHAAN PERDAGANGAN ECERAN DI BURSA EFEK INDONESIA

2019 ◽  
Vol 2 (2) ◽  
pp. 180
Author(s):  
Vargo Christian Tobing
Keyword(s):  
Capital Structure ◽  
Firm Value ◽  
Sampling Method ◽  
Stock Exchange ◽  
Retail Trade ◽  
Purposive Sampling ◽  
Equity Ratio ◽  
The Capital Structure

The conduct of this research aims to see how the influence of capital structure and changes in earnings on firm value. The population in this study are retail trade sub-sector companies in the Indonesia Stock Exchange. Determination of the sample using purposive sampling method. The samples studied in this study were 9 companies. The results of the study concluded that the capital structure measured by the ratio of debt to equity ratio has no significant effect on firm value, earnings changes have no significant effect on firm value, and simultaneously, capital structure and earnings changes have no significant effect on firm value.

scholarly journals Effect of Profitability, Operating Leverage, Firm Size, and Growth Sales on Capital Structure

2018 ◽  
pp. 408
Author(s):  
Cokorda Istri Diah Yudiandari
Keyword(s):  
Regression Analysis ◽  
Linear Regression ◽  
Capital Structure ◽  
Firm Size ◽  
Stock Exchange ◽  
Linear Regression Analysis ◽  
Multiple Linear Regression Analysis ◽  
Sales Growth ◽  
Operating Leverage

Capital structure is a financial decision related to the composition of corporate debt, preferred stock and common stock used by the company, managers must be able to raise capital, both from within the company and from outside the company efficiently. The problem of capital structure is an important issue for every company, because good bad corporate capital structure will have a direct influence on its financial position. The importance of determining the structure of capital because it can be a strong foundation for the company to run its production activities, and able to obtain optimal benefits for the company. The purpose of this research is to obtain empirical evidence of profitability, operating leverage, firm size and sales growth on the capital structure of banking companies listed in Indonesia Stock Exchange period 2013-2015. Determination of the sample using purposive sampling method where the determination of the sample is determined using the criteria of banking companies listed on the Indonesia Stock Exchange period 2013-2015 and banking companies that publish the financial statements in succession during the period 2013-2015, obtained 10 companies that meet the criteria in 3 Years of observation resulting in 30 samples. Hypotheses were tested using multiple linear regression analysis techniques. Based on the results of multiple linear regression analysis it is known that profitability and firm size have no effect on capital structure. However, operating leverage and sales growth have a negative and significant influence on capital structure. Keyword:  profitability, operating leverage, company size, sales growth, capital structure

FINANCIAL PREFERENCES OF LISTED FIRMS IN EMERGING MARKET: THEORY AND PRACTICE IN THE CASE OF THAILAND

2012 ◽  
Vol 01 (06) ◽  
pp. 134-142
Author(s):  
Suveera Srijaroen ◽  
Jun Jiang
Keyword(s):  
Capital Structure ◽  
Stock Exchange ◽  
Empirical Test ◽  
Emerging Market ◽  
Explanatory Power ◽  
Theory And Practice ◽  
Financial Leverage ◽  
Market Theory ◽  
Listed Firms ◽  
Tax Shield

The study aims to identify the determinants of Thai listed firms’ capital structure using derived theoretical-based models from CAPM and Hamada equations, which incorporate the control variables, i.e. company’s operating performance and capital size, with time-invariant and random effects, for improving the explanatory power of the model. The empirical test employs the quarterly data covering the year 2006 to 2010 from the Stock Exchange of Thailand. The results showed that the tax shield and industry classification explicitly demonstrate material relevance to the alteration of the firm’s degree of financial leverage. The results also showed that the fixed assets merely exert moderate influences on the firm’s willingness to implement a policy of increasing financial leverage. Conclusively, none other relevant factors possess a significant impact on the choice of capital structure, in the case of Thailand.

scholarly journals THE EFFECT OF CAPITAL STRUCTURE AND GOOD CORPORATE GOVERNANCE ON FINANCIAL PERFORMANCE

2020 ◽  
pp. 32-40
Author(s):  
Putri Renalita Sutra Tanjung
Keyword(s):  
Corporate Governance ◽  
Capital Structure ◽  
Financial Performance ◽  
Stock Exchange ◽  
Manufacturing Companies ◽  
Good Corporate Governance ◽  
The Board Of Directors ◽  
Negative Effect ◽  
Regression Tests

This study aims to examine the effect of Capital Structure and Good Corporate Governance on Financial Performance. This research's object is the food and beverages sub-sector manufacturing companies listed on the Indonesia Stock Exchange in 2014-2018. This research was conducted using a sample of 18 selected companies listed on the Indonesia Stock Exchange. Determination of the selection using a purposive sampling method with criteria determined by the researcher using a causal relationship design. Therefore, the data analysis used is statistical analysis in the form of multiple linear regression tests. This study indicates that Debt to Asset Ratio has a significant negative effect on Financial Performance; Independent Commissioners have a significant positive on Financial Performance. At the same time, the Board of Directors and managerial ownership does not affect Financial Performance. KEYWORDS: Capital Structure, Good Corporate Governance, Financial Performance

scholarly journals Pengaruh Modal Kerja, Likuiditas, Struktur Modal Terhadap Profitabilitas Perusahaan Manufaktur 2012 – 2014

2019 ◽  
Vol 24 (1) ◽  
pp. 80
Author(s):  
Emillia Sastra
Keyword(s):  
Capital Structure ◽  
Stock Exchange ◽  
Secondary Data ◽  
Strong Relationship ◽  
Financial Statements ◽  
Coefficient Of Determination ◽  
Manufacturing Companies ◽  
Working Capital ◽  
Independent Variable

The purpose of this empirical research is to obtain empirical evidence about the influence of working capital, liquidity and capital structure on the profitability on manufacturing companies listed on the stock exchange from 2012-2014. This research used manufacturing companies for total of 198 data in three years and that were selected using purposive sampling method. The data used in this research are secondary data in the form of financial statements. The results showed that the working capital and liquidity has a positive significant effect on profitability, capital structure does not have a significant effect on profitability. The testing showed independent variable have a significant impact on the profitability and show that the correlation of the independent variables have strong relationship to the dependent variable. Testing results show that the coefficient of determination of 55.1%, dependent variable is affected by the independent variable, while the remaining 44,9 % is explained by other variables.

scholarly journals Faktor yang Mempengaruhi Struktur Modal pada Perusahaan Makanan dan Minuman Tbk

2021 ◽  
Vol 4 (1) ◽  
pp. 512-517
Author(s):  
Vina Arnita ◽  
Nina Andriany Nasution ◽  
Murnihati Murnihati
Keyword(s):  
Capital Structure ◽  
Stock Exchange ◽  
Financial Statements ◽  
Investment Opportunity ◽  
Purposive Sampling ◽  
Investment Opportunity Set ◽  
Food And Beverage ◽  
Operating Leverage ◽  
The Capital Structure

The research aims to analyze the influence of the investment opportunity set, profitability and operating leverage on the capital structureof food and beverage companies listed on the Indonesian Stock  Exchange for the 2014-2018 period. Determination of samples using purposive sampling with criteria namely food and beverage companies listed on the Indonesian Stock Exchange and those who publish financial statements in a row during the 2014-2018 period, obtained 10 companies that meet the criteria and 5 years of observation to produce 50 samples. The results of the study indicate that the investment opportunity set variable in a negative and not significant effect on capital structure with a significance value of 0,129> 0,05, profitability in a positive and significant effect on capital structure with a significane value of 0,031< 0,05 and operating laverage in a prsial positive and significant effect on capital structure with a significance value of 0,030< 0,05. Investment opportunity set, profitability and operating laverage simultaneously influence the capital structure with a significance value of 0,049 > 0,05. Investment opportunity set, profitability and operating laverage are able to explain the capital structure of 10,5% is expalined by other factors not included in this study.

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