Determinant Factors of the Capital Structure of a Firm- an Empirical Analysis

Serghiescu, Laura; Văidean, Viorela Ligia

doi:10.1016/s2212-5671(14)00610-8

Cited by 83 publications

(84 citation statements)

References 15 publications

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“…Second Stage Regression __________________________________________ Var PBD PBV __________________________________________ RPIF -0,0521*** -0,4697*** (-5,4575) (5,4695) CR 0,0003*** -0,0190*** (2,6717) (-5,6879) TATO 0,0002*** 0,0269** (3,5168) (2,0482) TANG 0,0011 0,1636*** (1,5999) (3,8492) N 285 285 Adj R 2 0,9936 0,9756 _____________________________________________ ***significant α = 1%, **significant α = 5%, *significant α = 10%. This is in line with the studies by Serghiescu et al (2014), Onofrei et al (2015), and Kim et al (1993) who also found a significant negative result. The results of this study are also supported by the pecking order theory, namely, when the profitability of the company increases, it will be easier for the company to generate internal funds for its activities so that less debt is used by the company.…”

Section: Resultssupporting

confidence: 92%

“…In the event of an increase in the company's performance (RPH and RPI), the company will also reduce the total debt that companies use for expansion, purchase of machinery and so on because companies prefer to use internal rather than external funding. This is in line with the findings of Serghiescu et al (2014), Onofrei et al (2015), and Kim et al (1993) who also found a significant negative result. The results of this study are also supported by the pecking order theory, namely when the profitability of the company rises, it will be easier for the company to generate internal funds for its activities so that less debt is used by the company.…”

Section: Resultssupporting

confidence: 91%

See 1 more Smart Citation

Internationalization, firm performance, and capital structure: an empirical study in Indonesia

Edward¹,

Marciano²

2019

Proceedings of the 16th International Symposium on Management (INSYMA 2019)

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The objective of this study is to examine the impact of internationalization, firm perfo rmance, and capital structure: an empirical study in Indonesia. This research used industrial manufacturing companies listed on the Indonesian Stock Exchange over the 2012 -2016 period. The dependent variable in this study is the capital structure. Independent variables used are internationalization an d firm performance, Control variables used are size, age current ratio, tangibility, and total asset turn over. This study used multiple linear regression analysis models (two -stage least square) to test the hypothesis with a sample of 57 manufacturing companies listed on the Indonesian Stock Exchange over the 2012-2016 period. The number of observations used in this study was 285 observations at first by using classical. The study findings suggest that internationalization has a significant positive effect on relative performance based on historical target, and a significant negative effect on relative p erformance based on the industrial target. While relative performance based on historical target and relative performance based on industrial target has a significant positive effect on short term debt and private debt and also has a significant negative effect on long term debt, total debt, and public debt.

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Section: Resultssupporting

confidence: 92%

Section: Resultssupporting

confidence: 91%

Internationalization, firm performance, and capital structure: an empirical study in Indonesia

Edward¹,

Marciano²

2019

Proceedings of the 16th International Symposium on Management (INSYMA 2019)

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“…Titman and Wessels [37]arguedthat a larger firm tends to be more diversified than smaller counterparts and are therefore prone to collapse. Previous paper illustrated that firm size has a positive relationship with capital structure [18], [25], [38]- [41].…”

Section: A Firm Sizementioning

confidence: 99%

“…Research conducted by Akinlo [15]states that the level of corporate liquidity has a positive effect on capital structure. However, some other studies revealed that liquidity has negatively affectedcapital structure [14], [19], [25]- [28]. Some previous studies also revealed that growth opportunities have a positive effect on capital structure [8], [14], [16], [18], [21], [29], but others indicated negative effect [15], [22], [30].…”

Section: Introductionmentioning

confidence: 99%

Analysis of Factors Affecting Capital Structure in Food and Beverage Manufacturing Company

Aini¹,

Habibah

2018

IJoASER

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The purpose of this research to analyze the influence of firm size, liquidity, growth opportunities, tangibility asset, and business risk to the capital structure of listed food and beverage manufacturing companies in Indonesia and Vietnam Stock Exchange from 2010 to 2016. The result shows that the fixed effects model should be appropriate for this study as compared to the random effect model. Capital structure significantly differences between the two countries. Firm size has a positive but insignificant influence on the capital structure in Indonesia, whereas it has a positive and a significant influence on the capital structure in Vietnam. Liquidity has a negative and significant influence on the capital structure both in Indonesia and Vietnam. Growth opportunities have a negative but insignificant influence on the capital structure both in Indonesia and Vietnam. Asset tangibility has a positive but insignificant influence on the capital structure in Indonesia, but it has the negative but insignificant influence on the capital structure in Vietnam. Ultimately, the business risk has a negative and significant influence on the capital structure in Indonesia but has a positive and insignificant influence on the capital structure in Vietnam.

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“…Profitable companies mainly focus on liquidity compare to leverage in order to minimize risks. (Serghiescu and Vaidean, 2013).…”

Section: Literature Reviewmentioning

confidence: 99%

A Comparative Analysis between Commercial Banks and Insurance Companies in Bangladesh on the basis of Capital Structure

Moniruzzaman

2017

IJBSR

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This research aims to compare the capital structure of Bangladeshi commercial banks and insurance companies. This research tries to identify how debt-equity mix influences firm performance in banks and insurance companies in Bangladesh. The annual financial statements of 10 commercial banks and 10 insurance Companies were used for this study which covers a period of five (5) years from 2011-2015. The study assesses the capital structure of the commercial banks and insurance companies measured by total debt to equity ratio (DER), total debt to total funds ratio and performance by ROE, ROA, and EPS. Descriptive statistics, t-test have been used to show the differences between commercial banks and insurance companies capital structure and performance. However this study concludes that there is no significant difference between Bank and insurance companies EPS& ROE but there is a significant difference between Bank and insurance company's D/A ratio, D/E ratio and ROA. We have tried to find out the significances of capital structure on depository and non-depository financial institutions from this study.

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Determinant Factors of the Capital Structure of a Firm- an Empirical Analysis

Cited by 83 publications

References 15 publications

Internationalization, firm performance, and capital structure: an empirical study in Indonesia

Internationalization, firm performance, and capital structure: an empirical study in Indonesia

Analysis of Factors Affecting Capital Structure in Food and Beverage Manufacturing Company

A Comparative Analysis between Commercial Banks and Insurance Companies in Bangladesh on the basis of Capital Structure

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