Articles

Capital Structure Determinants of Public Infrastructure Companies in Indonesia

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The infrastructure utilization concept is a service that is created by certain or several infrastructures over a certain period. The service output should increase a region or nation’s productivity over time, stimulating economic growth. Under the leadership of President Joko Widodo, developing the infrastructure is one of the government’s priorities to support Indonesia’s economic development. The government invested in infrastructure USD 429.7 billion in 2020-2024, which is up 20% compared to 2015-2019. The financial characteristic of the infrastructure sector is the steady cash flow due to the revenue model, which makes it easy to predict so it can utilize to gain high-level leverage. High-level leverage also possesses a huge risk, it requires the company or project’s ability to generate revenue to pay the financing interest. Due to the risks that are possessed by the infrastructure industry, the capital structure needs to be managed carefully. This study is to analyze the capital structure’s determinants, which have a significant impact.

The population is all companies in the infrastructure sector listed on Indonesia Stock Exchange (IDX). The data that will be used is obtained from audited company reports. An unbalanced panel data regression with GLS estimators is used to examine the secondary data. The static capital structure model will be the model that is used in this study. The static capital structures are based on the trade-off theory. Determinants of capital structure based on the static model are profitability, tangibility, growth, and liquidity. Profitability, tangibility, and liquidity positively affect the leverage ratio, while growth has a negative significant effect. Profitability has the highest impact among the determinants that have a positive impact. Which means that leverage is highly affected by it.

Analysis of Factors Affecting Capital Structure in Food and Beverage Companies in the Indonesia Stock Exchange

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The capital structure of food and beverage sector companies on the Indonesia Stock Exchange is influenced by several variables, such as; Profitability, Liquidity and Activities of the company. The purpose of this study is to analyze the factors that influence the Capital Structure of Food and Beverage Sector Companies on the Indonesia Stock Exchange (IDX).

The population of the Food and Beverage Sector Companies on the Indonesia Stock Exchange (IDX) for the 2014 – 2018 period is 30 companies and 11 companies can be sampled. The analysis method uses the Classical Assumption Test, Correlation Test, Multiple Linear Regression, ANOVA Test and Partial t Test, using SPSS Software Version 22.

The results showed that the Current Ratio and Asset Structure had a significant effect on the capital structure of the Food and Beverage Sector Companies on the Indonesia Stock Exchange, while Return on Equity had no significant effect. Taken together, ROE, CR and SA have a significant effect on the Capital Structure of Food and Beverage Sector Companies on the IDX.

Impact of Capital Structure on Firm Performance of Food and Beverage Listed Companies on the Stock Exchange of Vietnam

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This study tested the relationship between capital structure and firm performance. Data were collected from 41 food and beverage companies listed on the Vietnam Stock Exchange from 2017 to 2021. Three variables were used to measure the performance of each company, including ROA, ROE and EPS. The ratio of total debt to total assets (DA), total debt to total equity (DE), short-term debt to total assets (SDTA) and long-term debt to total assets (LDTA) are the key factors. for capital structure. Besides, growth rate (GROWTH) and company size (SIZE) are also applied in the model as control variables. As a result, most of the capital structure variables have a negative effect on each of the firm’s performance variables. It is noteworthy that this study also illustrates the negative correlation between ROE and capital structure shown, which was thought to be insignificant in many previous studies but also shows a negligible relationship between SDTA and SDTA. Moreover, ROE was rarely seen in previous studies. Furthermore, the research results also show a negligible impact on growth rate and a positive relationship between size and firm performance.

The Effect of Capital Structure and Operating Leverage on Going Concern Opinion with Profitability as Intervening Variables in Property and Real Estate Sub Sector Services Companies Listed on the Indonesia Stock Exchange for the 2014-2019 Period What is the Profitability to Mediate the Going Concern Audit Opinion: Empirical Evidence on Developing Capital Markets

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The purpose of this study is to empirically examine the effect of capital structure and operating leverage on going concern opinions with profitability as an intervening variable. The population of this research is the property and real estate sub- sector service companies listed on the Indonesia Stock Exchange in the 2014-2019 period, which are 65 companies. The sample in this study amounted to 15 companies and had 90 observational data that had been selected using the purposive sampling method. The data used in this study is secondary data obtained from the Indonesia Stock Exchange (IDX) and data analysis using Logistics Regression analysis. The results of this study indicate that capital structure, operating leverage and profitability have a positive influence on going concern opinions and capital structure and operating leverage have no effect on profitability and even profitability is not able to mediate the effect of capital structure on operating leverage, to the going concern opinion.