Customer Satisfaction, Efficiency, and Capital Structure as Determinants of Performance Transportation Companies in Indonesia

Abstract

This study aimed to describe the influence of customer satisfaction, efficiency and optimal capital structure to the increase of the performance of transportation companies in Indonesia. The study was designed in the relationship between variables. The data used is secondary data obtained from the Indonesian Capital Market Directory (ICMD) and the website of 22 companies that were used as samples for 3 years. Data were analyzed using descriptive and inferential statistics analysis to test the hypothesis. The result showed that the efficiency affected customer satisfaction and was reflected in the sales growth of the company. However, it did not have an impact on the level of capital structure as reflected in DER and the performance which reflected in ROA. We also found that there was an indirect effect on the efficiency of the capital structure and performance through customer satisfaction. We also found that there is a significant indirect influence on the efficiency and the performance through customer satisfaction and capital structure. Customer satisfaction capital affects the structure. When customer satisfaction is high, which is reflected in higher sales growth aspect, it will have an impact on the high capital structure, which is reflected in DER. The result shows that customer satisfaction has an effect on the performance. When customer satisfaction is high, which is reflected in higher sales growth aspect, it will have an impact on the high performance, which is reflected in aspects of ROA. The result also indicates that capital structure affects the performance. When a capital structure is high, which is reflected by the high DER aspects, it will impact on the high performance, which is reflected on aspects of ROA.

Re-examining the determinants of capital structure in Nigeria

“…Firm's size has a positive effect on leverage 3.1.2.7 Firm's efficiency. Following few studies in the literature (Margaritis and Psillaki, 2007;Akhtar et al, 2016;Mursalim et al, 2017;Njagi et al, 2017;Ding and Siclkes, 2018), this work further argues that firm efficiency has a significant effect on its leverage. This is because a more efficient firm has a high probability of reporting consistent profit over time.…”

“…Yet, the determinant does not enjoy a unanimous consensus among these few studies. While Njagi et al (2017) reports a positive and insignificant effect of efficiency on capital structure, studies (Margaritis and Psillaki, 2007;Akhtar et al, 2016;Mursalim et al, 2017) have reported a positive and significant impact of efficiency on capital structure decisions of firms. Still, Ding and Siclkes (2018) note a significant negative relationship between risk structure and efficiency.…”

“…Hence, the issue of efficiency is highly essential for determining capital structure decisions among firms. Despite the great importance of firm efficiency in capital structure decisions as evidenced in the theoretical literature, only few studies have incorporated this important factor among its determinants in the empirical literature (Margaritis and Psillaki, 2007;Akhtar et al, 2016;Mursalim et al, 2017;Njagi et al, 2017). Yet, the determinant does not enjoy a unanimous consensus among these few studies.…”

Understanding People’s Acceptance of Light Rail Transit in Bandung and Its Determinant Factors

“…LRT is not only an answer to counter urban sprawl in a big city like Bandung, but it is also an implementation of technology innovation that holds sustainability value in the economy, society, and environment (Sukarno et al, 2016). By bringing out the sustainable transportation concept as an innovative system, there is a chance of lack of adaption or refusal to the new transportation from the people (Sanusi, Thayf, & Alamzah, 2017;Sharma & Newman, 2017). In order to succeed in the development of a new transportation system, public transportation should be perceived as a consumer-oriented market (Molander, 2018;Sanusi et al, 2017).…”

“…By bringing out the sustainable transportation concept as an innovative system, there is a chance of lack of adaption or refusal to the new transportation from the people (Sanusi, Thayf, & Alamzah, 2017;Sharma & Newman, 2017). In order to succeed in the development of a new transportation system, public transportation should be perceived as a consumer-oriented market (Molander, 2018;Sanusi et al, 2017). Hence, it is important to examine the market readiness of potential public transportation users.…”