Capital Structure Conditions Affected by Company Internal Factors: a Case Study of Non-Cyclicals Consumer Companies on Indonesian Stock Exchange

Abstract

The purpose of this research is to find out how the variables of firm size, asset structure, profitability, liquidity, and sales growth influence the capital structure of non-cyclical consumer companies listed on the Indonesia Stock Exchange. The population in this study was 55 non-cyclical consumer companies listed on the Indonesia Stock Exchange in 2015 - 2019, while for the method of determining the sample in this study using a purposive sampling technique, as many as 25 companies. The analytical technique used is multiple linear regression analysis with panel data using the Eviews 9 program. The results show that the variables of firm size, asset structure, profitability, liquidity and sales growth have a negative and significant effect on capital structure. These results indicate that the variables of firm size, asset structure, level of profitability, liquidity and sales growth have increased, it will cause the level of the company's capital structure to decrease. Contribution to this research is expected that the company can increase company size, asset structure, profitability, liquidity and sales growth so that the use of debt in the company's capital structure decreases. This study only examines five independent variables, namely firm size, asset structure, profitability, liquidity, and sales growth. This study focuses only on examining Consumer Non-Cyclicals companies listed on the Indonesia Stock Exchange (IDX). Future research is expected to be able to add other variables that affect the capital structure by using company external variables such as taxes, economic conditions, interest rates with research objects in other companies, as well as with a longer research period so that the results obtained can be generalized.

The Influence of Agency Cost, Intellectual Capital, Managerial Ownership, and Institutional Ownership on Firm Value with Financial Performance As a Moderating Variable in LQ45 Companies Listed on the BEI in 2020--2022

“…The results of this research are in line with research by [7,35] and based on previous research, the author found that Agency Cost does not have a significant effect on Firm value. Where the higher Agency Costs incurred do not significantly influence the increase in Firm value because in terms of auditing quality the financial statements do not reflect the high share market value of companies audited by external parties.…”

Unveiling the Changing Capital Structure Dynamics in the Oil and Gas Industry: Evidence from Pakistan

“…The oil and gas industry invests more in working capital. In line with earlier studies, LQTY exhibits a negative connection (Rokhayati et al, 2021). FS depicts a positive relationship as expected; hence our hypothesis is not rejected.…”

“…Amatya (2020) further discovered an inverse correlation between LQTY and FL. The findings demonstrate that FS, AS, PFTY, LQTY, and sales growth have an adverse and notable impact on capital structure (Rokhayati et al, 2021). Relying on the literature discussed above, we suppose the LQTY factor discourages debt financing, and LQTY and FL are inversely related.…”

Analisis struktur modal pada perusahaan asuransi yang terdaftar di Bursa Efek Indonesia (BEI) periode 2014-2020

“…Penyesuaian yang berasal dari internal perusahaan dapat berupa peneyesuaian dari struktur modal perusahaan. Menurut Dewi (2019); Rokhayati (2021), masalah kebutuhan dana dan persediaan modal adalah masalah yang penting karena menyangkut struktur modal perusahaan yang mana mencerminkan kondisi keuangan perusahaan. Sutrisno (2017) menyatakan struktur modal merupakan imbangan antara modal asing atau hutang dengan modal sendiri.…”