The Impact of Capital Structure on Profitability of Manufacturing Companies: using Multiple Regression Model

Revathy, S; Santhi, V.; Sreekala, S.

doi:10.5958/2249-7315.2016.00060.5

Cited by 10 publications

(10 citation statements)

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“…Adequate business capital helps the smoothness of business production. Revathy & Shanti (2016) state that capital is one of the production factors to determine productivity and influence income. It is confirmed by Wirawan et al (2015) and Yuniartini (2013) , also stating that capital significantly and positively affects business income.…”

Section: Resultsmentioning

confidence: 99%

Determinants of micro, small, and medium-scale enterprise performers’ income during the Covid-19 pandemic era

Suminah

Suwarto

Sugihardjo

et al. 2022

Heliyon

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Section: Resultsmentioning

confidence: 99%

Determinants of micro, small, and medium-scale enterprise performers’ income during the Covid-19 pandemic era

Suminah

Suwarto

Sugihardjo

et al. 2022

Heliyon

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“…Several studies have proven empirically the negative effect of debt on ROA, including Endri et al (2020c), Qayyum and Noreen (2019). Dalci (2018), Revathy et al (2016), Isik (2017), Asimakopoulos et al (2009), Nanda and Panda (2018), Rudin et al (2016). Different findings are suggested by research by Kartikasari and Merianti (2016) who found that DER increased ROA, while the findings of Al-Jafari and Al Samman (2015) and Tailab (2014) state that DER does not affect ROA.…”

Section: Leverage and Profitabilitymentioning

confidence: 98%

Coal Price and Profitability: Evidence of Coal Mining Companies in Indonesia

Endri

Utama²,

Aminudin³

et al. 2021

IJEEP

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“…Long-term debt incorporates all liabilities other than the short-term debt and shareholders' equity. This typically includes large senior debts like mortgages and loans to purchase equipment or construct buildings (Revathy & Sreekala, 2016).…”

Section: Literature Reviewmentioning

confidence: 99%

“…Equity financing the second type of financing is equity financing or shareholders´ equity is part of the total capital of a business; Equity financing includes common stock, preferred shares, or retained earnings (Revathy & Sreekala, 2016). The company needs equity financing to expand the business more capital is needed, so the company issue shares to the general public, and the share issue is known as equity financing.…”

Section: Literature Reviewmentioning

confidence: 99%

Analysis of Capital Structure and Financial Performance in the Jordanian Insurance Sector

Shamsuddin

Kamel

Daud

et al. 2020

HSSR

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Purpose of the study: This paper aims to examine the impact of capital structure and financial performance of listed insurance companies in Jordon. Methodology: This study used secondary data that was collected from Amman stock exchange and annual report of the selected insurance companies from the year 2007-2017. The static panel data analysis technique is used to examine the impact of capital structure on firm’s performance. The capital structure is measured using short-term debt, long-term debt, and equity financing. Whereas financial performance is measured using Return on Asset (ROA), Return on equity (ROE), and Tobin’s Q. Main Findings: The study findings suggest that capital structure influence the profitability of the listed insurance firms in Jordan. The results also reveal a signiﬁcantly positive relation between long-term debt to total assets to profitability indicators, namely, return on assets (ROA), return on equity (ROE) and Tobin’s Q. On the other hand, the results also reveal a short-term debt has a significant positive relationship with return on equity (ROE) and returns on assets (ROA). However, a relationship between short-term debt and Tobin’s Q is not statistically significant. Applications of this study: The result of this study may assist the insurance sector in Jordon in making decisions regarding capital structure, which is to significantly rely on equity financing or debt financing to reduce financing risk such as agency cost that borne by the equity holders of the Jordanian insurance firms. Novelty/Originality of this study: The study noted that insurance firms generally play a crucial role in the economic development of every country. This study provides evidence that Jordanian insurance firms need to diversify their sources of financing and not rely significantly on debt financing, as the results prove that equity financing is a profitable source of financing.

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The Impact of Capital Structure on Profitability of Manufacturing Companies: using Multiple Regression Model

Cited by 10 publications

References 0 publications

Determinants of micro, small, and medium-scale enterprise performers’ income during the Covid-19 pandemic era

Determinants of micro, small, and medium-scale enterprise performers’ income during the Covid-19 pandemic era

Coal Price and Profitability: Evidence of Coal Mining Companies in Indonesia

Analysis of Capital Structure and Financial Performance in the Jordanian Insurance Sector

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