Impact of Business Risk on Corporate Capital Structure of Publicly-Listed Nigerian Companies

Mohammed, Dauda

doi:10.9790/487x-0520115

Cited by 5 publications

(3 citation statements)

References 51 publications

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“…These investors' thoughts are in line with the Trade-off Theory which states that a higher risk due to the enlargement of debt tends to reduce the stock price; however, it will increase the rate of return of expectations for the price of the expectation. This research is not in line with the research by (Mohammed, 2012) and (Alnajjar, 2015), which shows that business risk was considered when the decision of a firm's capital structure made. The test results for asset growth variables in Table 4 (AGROW) indicate that the asset growth variables have a coefficient of 0.328658.…”

Section: Methodscontrasting

confidence: 83%

Factors Affecting Capital Structure And Stock Prices Of Agricultural And Mining Companies

Gracia

Panggabean

2019

riset

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The purpose of this study was to analyze the influence of business risk, asset growth, sales growth, earning per share, and asset structure to capital structure and share price. This study involved mining and agriculture companies listed on IDX within the period of 2010-2017. The analysis employed eViews 9. Based on the hypothesis testing, it was found that that business risk, sales growth, and asset structure do not have a significant effect on capital structure. However, asset growth has a significant influence. Furthermore, sales growth and EPS do not have a significant effect on share price, but the asset structure has a significant influence. This research is a development of previous research by adding earnings per share as an independent variable and covering the period 2010 - 2017 in order to show the most actual conditions. Company management can make the results of this study a consideration in determining the optimal capital structure. This study only examined the mining and agricultural sectors on the Indonesian stock exchange.

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Section: Methodscontrasting

confidence: 83%

Factors Affecting Capital Structure And Stock Prices Of Agricultural And Mining Companies

Gracia

Panggabean

2019

riset

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“…Firms with high business risk generally prefer to use internal funds rather than using debt or issuing shares. The higher the business risk, the capital structure will lower (Mohammed, 2012 andNuswandari, 2013).…”

Section: The Effect Of Business Risk On the Firm Capital Structure (Der)mentioning

confidence: 99%

Pecking Order and Trade-off Theory in Capital Structure Analysis of Family Firms in Indonesia

Oktavina

Manalu

Yuniarti

2018

Jurnal Keuangan Dan Perbankan

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The purpose of this study has analyzed the determinants of policy decisions of the capital structure of family firms listed on the Indonesia Stock Exchange (IDX) in 2012-2016. The company's capital structure was measured by using debt to equity ratio (DER). Determinants of capital structure used include profitability (ROA), asset structure, growth (growth), firm size (size) and business risk (risk). This research was a quantitative research with a kind of causal research. Using a sample of 38 family companies in Indonesia listed on the Indonesia Stock Exchange (IDX). Hypotheses testing method of multiple linear regression. The result showed that ROA had a negative effect not significant to DER. The asset structure had a significant positive effect on DER, growth had no significant negative effect on DER, size had no significant positive effect on DER, and risk had a significant negative effect on DER. The findings research that the average family firm in Indonesia still uses Pecking Order Theory in the application of capital structure.

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“…Dengan tingginya risiko bisnis, maka meningkat pula penggunaan hutang jangka panjang perusahaan. Temuan ini mendukung hasil penelitian sebelumnya dari (Wimelda dan Marlinah, 2013) serta (Mohammed, 2012).…”

Section: H2: Diterima Profitabilitas Memiliki Pengaruh Negatif Terhaunclassified

PENGARUH TANGIBILITY, PROFITABILITAS, GROWTH, RISIKO BISNIS DAN LIKUIDITAS TERHADAP KEBIJAKAN HUTANG (Studi pada Perusahaan Manufaktur yang Terdaftar di Bursa Efek Indonesia Periode 2015-2017)

Abubakar¹,

Daat²,

Sanggenafa³

2020

jakd

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The research aims to analyze the influence oftangibility, profitability, growth, business risk, and liquidity to debt policy. This research is repurposed to review the influence oftangibility, profitability, growth, business risk, and liquidity of debt policy. Financial report is obtained by access to www.idx.co.id. The number of samples obtained in this study was as much as 178 samples. The analytical techniques used in this study are multiple linear regression to obtain a thorough picture of the relationship between the variables of one another. The results in this study show that profitability, business risk, liquidity, and size of the company have an influence and significance to the debt policy. While tangibility, growth, and age companies do not affect the debt policy.

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Impact of Business Risk on Corporate Capital Structure of Publicly-Listed Nigerian Companies

Cited by 5 publications

References 51 publications

Factors Affecting Capital Structure And Stock Prices Of Agricultural And Mining Companies

Factors Affecting Capital Structure And Stock Prices Of Agricultural And Mining Companies

Pecking Order and Trade-off Theory in Capital Structure Analysis of Family Firms in Indonesia

PENGARUH TANGIBILITY, PROFITABILITAS, GROWTH, RISIKO BISNIS DAN LIKUIDITAS TERHADAP KEBIJAKAN HUTANG (Studi pada Perusahaan Manufaktur yang Terdaftar di Bursa Efek Indonesia Periode 2015-2017)

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