The Determinants of Capital Structure: A Case Study

Loan, Bui Thi Thu; Thang, Nguyen Xuan; Phượng, Đặng Thị; Phuong, Le Thi My; Anh, Pham Tuan

doi:10.9770/jssi.2020.9.m(1)

Cited by 5 publications

(11 citation statements)

References 14 publications

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“…The main results suggest that MEXP negatively affects CAPS. This finding is consistent with (Borgia & Newman (2012); Loan, et al (2020); Matemilola et al (2018); Ting et al (2016). Hence, firms with more experienced CEOs have lower debt levels.…”

Section: Discussionsupporting

confidence: 85%

“…To our best knowledge, the role of managerial experience and fixed assets on capital structure is relatively understudied (Borgia & Newman, 2012;Loan, et al, 2020;Matemilola et al, 2018;Ting et al, 2016). Thus, our paper extends the capital structure literature by investigating fixed assets' moderating role on the relationship between managerial experience and capital structure.…”

Section: Introductionmentioning

confidence: 83%

“…More experienced managers (longer tenure) arguably can make better decisions because they know how to exploit their firms' resources more effectively (Dong, 2016). Borgia & Newman (2012); Loan, et al (2020); Matemilola et al (2018) conclude that more experienced managers use higher debts in capital structure policies. However, Ting et al (2016) demonstrate that more experienced managers tend to be more careful and use lower debt levels in their firms' capital structure.…”

Section: Introductionmentioning

confidence: 99%

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Managerial experience, fixed asset, and capital structure

Giovanni¹,

Muharam²,

Hirawati³

et al. 2021

jeb

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This study empirically investigates the effect of managerial experience on capital structure and the role of fixed assets as the moderating variable in this relationship. Our research sample is all firms in the infrastructure, utilities, and transportation sectors listed at the Indonesian Stock Exchange in 2014-2018 based on the purposive sampling method. We analyze the research data with the ordinary least square (OLS) method. The results of our regression analysis show that managerial experience negatively affects capital structure. However, we find that fixed assets do not moderate the relationship between managerial experience and capital structure. Further analysis indicates that fixed assets moderate the relationship between managerial experience (MANXEP) and capital structure when MANEXP is measured with internal experience but not with the external one. Besides, the relationship between managerial experience and capital structure is significant when the fixed asset ratio is moderate or high. Overall, these findings indicate that studies on the effects of top managers/ CEOs’ characteristics on firms’ policies or performance should obtain and analyze more detailed measures of the CEOs’ characteristics or the context variables.

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Section: Discussionsupporting

confidence: 85%

Section: Introductionmentioning

confidence: 83%

Section: Introductionmentioning

confidence: 99%

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Managerial experience, fixed asset, and capital structure

Giovanni¹,

Muharam²,

Hirawati³

et al. 2021

jeb

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“…Profitability dengan capital structure. (Lie Sha, 2019), (Ramjee dan Gwatidzo, 2012), (Alipour et al, 2015, (Loan et al, 2020) menyatakan bahwa profitability berpengaruh negatif dan signifikan terhadap capital structure karena perusahaan yang mempunyai profitabilitas tinggi cenderung memilih pendanaan secara internal sehingga penggunaan utang sedikit.…”

Section: Kaitan Antar Variabelunclassified

“…Berdasarkan penelitian, tangibility berpengaruh positif dan signifikan terhadap capital structure (Lie Sha, 2019), (Cortez dan Susanto, 2012), (M'ng et al, 2017). Namun, berbeda dengan penelitian (Eviani, 2015), (Loan et al, 2020), (Gunardi et al, 2020) yang menyatakan bahwa tangibility tidak berpengaruh terhadap capital structure. H1: Tangibility memiliki pengaruh yang positif dan signifikan terhadap capital structure.…”

Section: Pengembangan Hipotesisunclassified

Analisis Determinan Capital Structure Dengan Firm Size Sebagai Variabel Moderasi

Cynthia¹,

Yanti²

2023

JPA

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This study aims to obtain empirical evidence regarding the influence of tangibility, profitability, and business risk on capital structure with firm size as a moderating variable in manufacturing companies listed on the Indonesia Stock Exchange during 2017-2019. The sample in this study was taken by purposive sampling method with a sample size of 258 data. This study uses multiple regression analysis and moderated regression analysis assisted by using EViews 11 Student Lite and Microsoft Excel 2010. The results of this study are tangibility and profitability have a positive and significant effect on capital structure, business risk has no significant effect on capital structure, firm size as a moderating variable weakens the positive relationship between tangibility and capital structure, firm size as a moderating variable weakens the positive relationship between profitability and capital structure, firm size as moderating variable cannot moderate the relationship of business risk on capital structure. The implication of this research is there is a need for proper composition of debt and equity in the company's financial in order to achieve a good and optimal capital structure.

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