THE CAPITAL STRUCTURE DETERMINATION OF MANUFACTURING COMPANY IN INDONESIA
DOI:
https://doi.org/10.37301/jmubh.v16i1.18337Abstract
The aim of this research is to analyze the factor that determines the firm’s capital structure. The population are manufacturing companies in Indonesia. The sampling technique used is purposive sampling, which the characteristics are listed manufacturing company and the data that available at least in three years on the period of 2015-2019. The total samples are 189 manufacturing companies. The research type is quantitative research, using secondary data obtained from Osiris Database. The research use balance panel data estimated by fixed effect model with Stata Software. The results show that size has a significant positive effect on the company’s capital structure, while liquidity and profitability have a negative significant effect on the company’s capital structure.
References
Amjad, S., Bilal, Tufail, S. (2013). What can be the Determinants of Capital Structure of Banking Sector of Pakistan? Proceedings of 3th International Conference on Business Management.
Bitar, M., Pukthuanthong, K., & Walker, T. (2019). Efficiency in Islamic vs. Conventional Banking: The role of Capital and Liquidity. Global Finance Journal, 100487.
Brigham, & Houston (2010). Dasar-dasar Managemen Keuangan.
Cevheroglu-Acar, M. G. (2018). Determinants of Capital Structure: Empirical Evidence from Turkey. Journal of Management and Sustainability, 8(1).
Chowdhurry, M. M, & Zaman, S. (2018). Effect of Liquidity Risk on Performance of Islamic Banks in Bangladesh. IOST Journal of Economics and Finance, 9(4), 1-09.
Don. D.F (2019) The impact of Liquidity Management on Bank Financial Performance in a Subdued Economic Environment: A Case of the Zimbabwean Banking Industry. Journal of Banking and Finance Management, 2(4), 26-27.
Efendi, F.M., & Ngatno, N. (2018). Pengaruh Return on Assets (ROA) terhadap Harga Saham dengan Earning Per-Share (EPS) sebagai Intervening (Studi Kasus pada Perusahaan Sub Sektor Tekstil dan Garmen yang terdaftar di Bursa Efek Indonesia Periode 2013-2016). Jurnal Administrasi Bisnis, 7(1), 1.
Fauzi, A. & Nurmatias, N. (2019). Pengaruh Profitabilitas dan Leverage terhadap Nilai Perusahaan dengan Kebijakan Dividen sebagai Variabel Intervening pada Perusahaan yang Terdaftar di BEI Tahun 2013. Jurnal Ekonomi dan Bisnis, 2(2), 177.
Fengju, X., Frad, R. Y., Maher, L. G., & Akhteghan, N. (2013). The Relationship between Financial Leverage and Profitability with an Emphasis on Income Smoothing in Iran’s Capital Market. European Online Journal of Natural and Social Sciences, 2(3), 156-164
Gropp, R., & Heider, F. (2010). The Determinants of Bank Capital Structure. Review of Finance, 14(4), 587-622.
Horne, J. C. V., & Wachowics J. M. (2012) Prinsip-prinsip Manajemen Keuangan. Jakarta: Salemba Empat.
Lisyawati, Oemar, A., & Supriyant, A. (2017). Pengaruh Ukuran Perusahaan (Size), Profitabilitas (ROA), Growth dan Likuiditas terhadap Struktur Modal Perusahaan Perbankan Syariah Periode Tahun 2011-2014. Journal of Accounting.
Marozva, G. (2015). Liquidity and Bank Performance. International Business & Economics Research Journal (IBER), 14(3), 453.
Mishkin, F. (2000). The Economics of Money, Banking and Financial Markets (6Tth ed.): Addison Wesley, New York.
Petria, N., Capraru, B., & Ihnatoc, I. (2015). Determinants of Bank’s Profitability Evidence from EU 27 Banking Systems. Procedia Economics and Finance, 20(15), 518-524.
Roman, A., & Sargu, A. C. (2015). The Impact of Bank-Specific Factors on the Commercial Banks Liquidity: Empirical Evidence from CEE Countries. Procedia Economics and Finance, 20(15), 571-579.
Schildback, J. (2017). Large or Small? How to Measure Bank Size. EU Monitor Global, Financial Markets, Deutsche Bank Research, 1-24.
Sokang, K., & Ratanah, N. (2018). Capital Structure, Growth, and Profitability: Evidence from Domestic Commercial Banks in Cambodia. International Journal of Management of Science and Business Administration, 5(1), 31-38.
Strýčková, L. (2015). Factors Determining the Corporate Capital Structure in the Czech Republic from the Perspective of Business Entities. Ekonomie a Management, 18(2), 40-56.
Titman, S., & Wessels, R. (1988). The determinants of capital structure choice. The journal of Finance, 43(1), 1-19.
Um, T. (2001). Determination of Capital Structure and Prediction of Bankruptcy in Korea. Unpublish PhD thesis, Cornell University.
Yang, C. C., Lee, C., Gu, Y. X., & Lee, Y. W. (2010). Co-determination of Capital Structure and Stock Returns—A LISREL approach: An empirical test of Taiwan Stock Markets. The Quarterly Review of Economics and Finance, 50(2), 222-233.
Yu, H. C. (2000). Banks Capital Structure and the Liquid Asset Policy Implication of Taiwan. Pacific Economic Review, 5(1), 109-114.
Downloads
Published
Issue
Section
License
Copyright (c) 2021 Foza Hadyu Hasanatina, Amalia Nur Chasanah, Vicky Oktavia
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Authors who publish with Jurnal Manajemen Universitas Bung Hatta agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Creative Commons Attribution-ShareAlike 4.0 International License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in Jurnal Manajemen Universitas Bung Hatta.
- The author holds the copyright of the submitted and published articles, with the understanding that articles are disseminated under the Creative Commons Attribution-ShareAlike 4.0 International License..
- The editor team is entitled to do the editing in accordance with the guidelines for writing or template in the Jurnal Manajemen Universitas Bung Hatta.
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
