Effect of Profitability, Liquidity, Sales Growth, Business Risk, and Asset Structure on Capital Structure

Hakim, Mohamad Zulman; Apriliani, Dinda

doi:10.22219/jaa.v3i2.12115

Cited by 4 publications

(1 citation statement)

References 8 publications

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“…Business risk is uncertainty related to special conditions that can result in the company's financial insecurity (Joni and Lina, 2010). Business risks affect the company's operational activities, the company's ability to repay its debts, and investors' interest in investing in the company (González L. et al, 2021;Hakim & Apriliani, 2020;Nejadmalayeri, 2021;Singhal et al, 1994). Some researchers have tested the effect of business risk on capital structure, but still show inconsistent results.…”

Section: Introductionmentioning

confidence: 99%

Effect of Business Risk and Profitability on Capital Structure with Likuiditas As Moderation

Orbaningsih

2022

Econ. Bus. Account. Soc. Rev

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The purpose of this study is to determine the effect of business risk and profitability on the capital structure with liquidity as a moderation variable. Quantitative methods were used in the study. The sample collection used purposive sampling of 11 companies listed on the IDX during 2017-2020. The analysis used moderation regression and classical assumption testing. The results showed that business risk and profitability affect the capital structure. Meanwhile, moderation variables are able to moderate the influence of business risk on the capital structure and are unable to moderate the effect of profitability on the capital structure.

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Section: Introductionmentioning

confidence: 99%

Effect of Business Risk and Profitability on Capital Structure with Likuiditas As Moderation

Orbaningsih

2022

Econ. Bus. Account. Soc. Rev

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Unlocking the Secrets of Profitability: Investigating the Role of Research and Development

Mubarok,

Sultan,

Wibowo

et al. 2023

J. Theor. Appl. Manage.

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Objective: The manufacturing sector is crucial for the development of emerging economies. This study aims to examine how research and development influence the firm's financial performance of manufacturing firms. Design/Methods/Approach: This study employs publicly listed Indonesian firms' panel data from 2017 to 2021. The data are analyzed using the panel data approach. Findings: The results indicate that research and development positively affect firm financial performance. Originality: Research and development investment has been commonly carried out in developed countries but is still very limited in developing countries. This study focuses on the role of investment in research and development in determining the financial performance of companies in an emerging country. Practical/Policy implication: Companies should prioritize cash and risk management to enable business expansion and innovation. Government support can be provided through tax incentives, R&D assistance, financing access, and public recognition of companies with high profitability. These incentives are aimed at enhancing economic growth and corporate competitiveness.

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The Effect of Profitability and Liquidity on Capital Structure in the Food and Beverages Sub-Sector Listed on the Indonesia Stock Exchange for the 2017-2019 Period

Tiyas

Nurasik

2022

acopen

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Technological developments within the company require companies to increase capacity to maximize operations without the need to use outside resources. This is related to the profitability and liquidity of the company because these two variables are closely related to the existence of debt in the company. If the company uses resources or debt, the company must properly manage it to maximize profits and pay short-term obligations. This study aims to determine the effect of profitability and liquidity on capital structure. The population used in this study is the food and beverage sub-sector listed on the Indonesia Stock Exchange for the 2017-2019 period. This study uses a quantitative method and the object of this research is the population and the sample is selected by the purposive sampling method, namely 12 food and beverage sub-sector companies listed on the Indonesia Stock Exchange for the 2017-2019 period. The data collection technique uses the company's annual report from the 2017-2019 period. This research was conducted with the help of the IBM SPSS Statistics 25 program. The results of this study indicate that the profitability variable has a positive and insignificant effect on capital structure, liquidity has a positive and significant effect on capital.

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Effect of Profitability, Liquidity, Sales Growth, Business Risk, and Asset Structure on Capital Structure

Cited by 4 publications

References 8 publications

Effect of Business Risk and Profitability on Capital Structure with Likuiditas As Moderation

Effect of Business Risk and Profitability on Capital Structure with Likuiditas As Moderation

Unlocking the Secrets of Profitability: Investigating the Role of Research and Development

The Effect of Profitability and Liquidity on Capital Structure in the Food and Beverages Sub-Sector Listed on the Indonesia Stock Exchange for the 2017-2019 Period

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