The Effect of Sales Growth, Capital Expenditure, and Working Capital Efficiency on Indonesian-Listed-Consumer-Goods Firms’ Financial Performance with Capital Structure as Moderating Variable

Dovita, Youlanda Githa; Rokhmawati, Andewi; Fathoni, Ahmad

doi:10.31258/ijesh.1.1.1

Cited by 3 publications

(9 citation statements)

References 4 publications

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“…Sebaliknya struktur modal perusahan yang didominasi oleh modal sendiri akan memperkecil beban bunga yang ditanggung perusahaan, sehingga profit yang diperoleh akan besar, namun tentu pajak yang harus dibayar besar. Hasil penelitian ini mendukung penelitian yang dilakukan oleh (Missy et al, 2016) dan (Dovita et al, 2019) yang menyatakan bahwa capital structure berpengaruh terhadap financial performance.…”

Section: Pengaruh Capital Structure Terhadap Financial Performanceunclassified

Pengaruh Sales Growth Dan Capital Structure Terhadap Financial Perfomance

Prabasari

Amalia²

2022

SLSI

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This study aims to examine the effect of sales growth and capital structure on financial performance in manufacturing companies in the customer good sector that are listed on the Indonesia Stock Exchange in 2018-2020. The sample used in this study is manufacturing companies that consist and profit in Indonesia Stock Exchange throught 2018-2020. The method of data collection used is purposive sampling with criteria. The data analysis is using Multiple Regression Analysis. The results show that sales growth does not significantly effect on financial performance. While capital structure gives a negative effect on financial performance. Keywords: financial performance, sales growth, capital structure

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Section: Pengaruh Capital Structure Terhadap Financial Performanceunclassified

Pengaruh Sales Growth Dan Capital Structure Terhadap Financial Perfomance

Prabasari

Amalia²

2022

SLSI

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“…This theory states that resources owned by firms increase the efficiency, growth and profitability of the firm (Dovita, Rokhmawati, & Fathoni, 2019), therefore, the firm's capital assets are brought into the business to increase the sales growth which leads to increase profitability (Ishtiaq et al, 2017). Moreover, Gradzewicz (2021) stated that if the firms have collection of resources, it can increase its sales growth which gradually increases its profit.…”

Section: Resource Based Theorymentioning

confidence: 99%

The Impact of Investment Decisions on Firm Profitability of Non-Financial Sectors in Pakistan: Mediating Role of Sales Growth

et al. 2022

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Investment decisions within the organizations are critical for firm’s profitability and also have a long-term impact because many of these decisions are irreversible. Firms with limited funds can achieve impressive returns if their investments are well-planned. Therefore, the research objective is to determine the impact of investment decisions on firm profitability (earning per share) of non-financial sector (Communication, media industry, energy sector etc.) of Pakistan. For this purpose, data was collected for the period of 2011-2021 from the annual reports of non-financial companies which were listed in 100 index Pakistan Stock exchange. The quantitative research approach, longitudinal research design and panel data approach has been used in the study. The panel data results indicates that working capital management (WCM) indicators namely inventory turnover ratio (ITO), average collection period (ACP), average payment period (APP) and cash conversions cycle (CCC) have positive and significant effect on earnings per share. In the same vein, capital expenditure also have positive and significant effect on earnings per share and also has indirect effect through the mediating effect of sales growth which indicates partial mediation because the coefficient after mediation was lower as compared to the direct effect. Based on the findings, the research has contributed a body of literature in the extant literature along with the significant and mediating effect. Therefore, this study could be considered to be a pioneer study that could help the researchers to conduct their research in future. This study could also help to the managers and decisions makers to know about the importance of investment decisions to increase firm profitability.

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“…Considering the importance of capital investment/expenditures decisions, it becomes clear that firms can improve their profitability by implementing appropriate capital assets decisions (Dovita, Rokhmawati, & Fathoni, 2019a, 2019b. Gradzewicz (2021) stated that firms make capital expenditures; i.e.…”

Section: Introductionmentioning

confidence: 99%

“…invest in long term assets in order to increase profitability. This means that a firm, as a collection of resources, is responsible to carefully make capital expenditures as it can affect firms' performance (Dovita et al, 2019a). This argument is in favor of 'Resourcebased Theory' stating that firm needs collection of tangible resources to improve business performance and carry on business activities.…”

Section: Introductionmentioning

confidence: 99%

“…The results indicated that there exists insignificant relationship between the capital investments and profitability of the firms. However, (Dovita et al, 2019b) studied the consumer goods company and discovered that capital expenditures significantly increases company's profitability. In contrast, Grozdić et al (2020) mentions that capital expenditures do not benefit immediately but definitely in future periods as capital assets take time to give returns.…”

Section: Introductionmentioning

confidence: 99%

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Investigating the Impact of Capital Expenditures on Firms’ Profitability of Textile Sector of Pakistan

Abbas

Ahmad

Mehmood

et al. 2023

Pak. J. Humanit. Soc. Sci

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The research objective was to determine the impact of capital expenditure on textile firm’s profitability in Pakistan. For this purpose, study utilizes panel data from the annual reports of firms operating in the textile sector of Pakistan. Quantitative research approach and longitudinal research design was applied. The panel data results indicates that the impact of capital expenditures on firm profitability is significant and positive. The findings suggest that increasing capital expenditures can lead to higher profitability for textile firms in Pakistan. This implies that textile firms in Pakistan should prioritize investments in capital expenditures in order to improve their financial performance. The findings provided by this research could be valuable for textile firms in Pakistan as they seek to make strategic investment decisions. Additionally, policymakers and investors in the textile sector can use the results of this study to inform their decision-making processes and optimize investment strategies. The study's findings could also contribute to a better understanding of the relationship between capital expenditures and firm profitability in the textile sector of Pakistan. The research could also helped to the researchers to conduct their research in future.

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The Effect of Sales Growth, Capital Expenditure, and Working Capital Efficiency on Indonesian-Listed-Consumer-Goods Firms’ Financial Performance with Capital Structure as Moderating Variable

Cited by 3 publications

References 4 publications

Pengaruh Sales Growth Dan Capital Structure Terhadap Financial Perfomance

Pengaruh Sales Growth Dan Capital Structure Terhadap Financial Perfomance

The Impact of Investment Decisions on Firm Profitability of Non-Financial Sectors in Pakistan: Mediating Role of Sales Growth

Investigating the Impact of Capital Expenditures on Firms’ Profitability of Textile Sector of Pakistan

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