The Role of Capital Structure on Firm’s Profitability of Listed Cement Sector in Pakistan Stock Exchange

2019 ◽  
Author(s):  
Muhammad Rehan ◽  
Jahanzaib Alvi ◽  
Saad Khatri
Keyword(s):  
Capital Structure ◽  
Stock Exchange

scholarly journals Features of the formation and management of the capital structure of state-owned enterprises

2020 ◽  
pp. 40-50
Author(s):  
С.Г. Макарова ◽  
Е.И. Андрианова
Keyword(s):  
Capital Structure ◽  
Financial Stability ◽  
Stock Exchange ◽  
Negative Influence ◽  
State Ownership ◽  
State Participation ◽  
Retained Earnings ◽  
The Capital Structure

Окончание. Начало в №5 за 2020 г. Вопрос о влиянии собственности государства в крупных российских компаниях на их структуру капитала остается открытым и пока не получил окончательного разрешения в литературе. Результаты работ, проведенных для российского рынка, свидетельствуют о значительной роли государственного участия в российских компаниях [5], а также о том, что российские компании с государственным участием имеют значительно более высокие значения долга в структуре капитала, чем частные [34]. В данной публикации для оценки роли государственного участия на структуру капитала российских компаний был проведен эмпирический анализ 139 публичных компаний за 2014-2018 гг. (выборка представлена государственными и частными компаниями), котирующихся на Московской бирже. В рамках проведенного исследования было выявлено, что отечественные публичные государственные компании при прочих равных условиях имеют более высокое значение долга в структуре капитала, чем частные. Кроме этого, компании с государственным участием имеют также более высокие значения коэффициента долгосрочных обязательств в сравнении с частными. Это подтверждает гипотезу о том, что деятельность государственных компаний связана с большими финансовыми рисками, чем частных, особенно в долгосрочной перспективе. В данной ситуации целесообразно ввести политику, направленную на повышение финансовой устойчивости государственных компаний, а именно, осуществлять деятельность по расширению производственных процессов за счет собственных средств и нераспределенной прибыли, а не за счет заемных средств. Также было получено положительное значимое влияние на структуру капитала компаний с государственным участием таких факторов, как размер компании, рентабельность продаж, рентабельность собственного капитала, было выявлено отрицательное влияние таких детерминант, как величина чистых активов, коэффициент оборачиваемости активов, отношение операционных расходов к EBITDA, рентабельность активов. The question of the influence of state ownership in Russian companies on their capital structure remains open for further discussion and the conclusion has not been drawn yet. The results of the work carried out for the Russian market indicate a significant role of state participation in Russian companies [4], as well as the fact that Russian companies with state participation have significantly higher values of debt in the capital structure than private ones [33]. In this publication, to assess the role of state participation in the capital structure of Russian companies, an empirical analysis of 139 public companies for 2014-2018 was carried out. (sample presented by state and private companies) listed on the Moscow Stock Exchange. n this study, it was revealed that domestic public state-owned companies, other things being equal, have a higher value of debt in the capital structure than private ones. In addition, companies with state participation also have higher values of the ratio of long-term liabilities in comparison with private ones. This confirms the hypothesis that the activities of state-owned companies are associated with greater financial risks than private ones, especially in the long term. In this situation, it is reasonable to introduce a policy aimed at increasing the financial stability of state-owned companies, namely, to carry out activities to expand production processes at the expense of their own funds and retained earnings, and not at the expense of borrowed funds. We also obtained a positive significant influence on the capital structure of companies with state participation of such factors as the size of the company, profitability of sales, return on equity, negative influence of such determinants as the value of net assets, the asset turnover ratio, the ratio of operating expenses to EBITDA, return on assets.

scholarly journals KINERJA KEUANGAN, KINERJA SAHAM DAN STRUKTUR MODAL DI INDONESIA

2018 ◽  
Vol 18 (2) ◽  
pp. 135
Author(s):  
Nera Marinda Machdar
Keyword(s):  
Capital Structure ◽  
Financial Performance ◽  
Stock Exchange ◽  
Order Theory ◽  
Analysis Method ◽  
Pecking Order ◽  
Pecking Order Theory ◽  
Stock Performance ◽  
Observation Period

<p><em>This study addresses the role of the company's financial performance on the company's stock performance, and investigates the role of capital structure as a moderating variable to weaken the effect of the company's financial performance on the company's stock performance. This research uses agency theory and pecking order theory. Panel regression analysis method is used for the data analysis. The data used as the sample of the company is the properti and real estat firms listed in Indonesia Stock Exchange, and the observation period is the year 2011-2016. The number of samples by using purposive samping criteria is available 234 firms-year. The findings of this study is that the company's financial performance has no effect on the company's stock performance, and capital structure can not moderate the effect of the company's financial performance on the company's stock performance.</em></p>

scholarly journals PENGARUH STRUKTUR MODAL DAN STRUKTUR KEPEMILIKAN TERHADAP KINERJA PERUSAHAAN DENGAN CORPORATE GOVERNANCE SEBAGAI VARIABEL MODERASI

2021 ◽  
Vol 10 (2) ◽  
pp. 100
Author(s):  
Maretha Kris Dwi Anggreni ◽  
Robiyanto Robiyanto
Keyword(s):  
Corporate Governance ◽  
Regression Analysis ◽  
Capital Structure ◽  
Capital Market ◽  
Stock Exchange ◽  
Analysis Tool ◽  
Company Performance ◽  
Optimal Point ◽  
Purposive Sampling

ABSTRACT This study aims to examine the effect of capital structure and ownership on company performance with moderation of corporate governance in trade, service and investment sector companies in 2016- 2019. The research data was obtained from the Indonesian Capital Market Directory (ICMD) and the annual financial reports listed on the Indonesia Stock Exchange. The total sample obtained based on the purposive sampling method was 76 samples and tested using the Eviews 9 analysis tool. The analysis technique used panel data regression analysis and Moderated Regression Analysis (MRA). Capital structure and corporate governance as proxied by the role of independent commissioners are proven to improve company performance. The implication of this research is to provide empirical evidence regarding the role of corporate governance in moderating capital structure and ownership structure on company performance. The use of debt in the capital structure can have a positive influence on the company's performance. So the applied implication for the company is that it can increase debt in its capital structure by taking into account the optimal point. In addition, companies can optimize the role of independent commissioners as corporate governance to improve supervision within the company so as to improve company performance. ABSTRAKPenelitian ini bertujuan menguji pengaruh struktur modal dan kepemilikan terhadap kinerja perusahaan dengan moderasi corporate governance pada perusahaan sektor perdagangan, jasa dan investasi tahun 2016-2019. Data penelitian ini diperoleh dari Indonesian Capital Market Directory (ICMD) dan laporan keuangan tahunan yang tercatat pada Bursa Efek Indonesia. Total sampel diperoleh berdasarkan metode pengumpulan data purposive sampling adalah sebanyak 76 sampel dan diuji menggunakan alat analisis Eviews 9. Teknik analisis pada penelitian ini menggunakan analisis regresi data panel dan Moderated Regression Analysis (MRA). Variabel struktur modal serta variabel moderasi corporate governance yang diproksikan dengan peran komisaris independen terbukti dapat meningkatkan kinerja perusahaan. Implikasi dari penelitian ini adalah memberikan bukti secara empiris terkait peran corporate governance dalam memoderasi struktur modal dan struktur kepemilikan terhadap kinerja perusahaan. Penggunaan utang pada struktur modal mampu memberikan pengaruh positif terhadap kinerja perusahaan. Maka implikasi terapan bagi perusahaan yaitu dapat meningkatkan utang pada struktur modalnya dengan memperhatikan titik optimal. Selain itu, perusahaan dapat mengoptimalkan peran komisaris independen sebagai corporate governance untuk meningkatkan pengawasan dalam perusahaan sehingga meningkatkan kinerja perusahaan.JEL : G30, G32, G34

scholarly journals Capital Structure and Firm Performance: How Does Marketing Expense Interact?

2021 ◽  
pp. 12-28
Author(s):  
R. M. R. P. Wijesooriya ◽  
B. T. K. Chathuranga ◽  
T. M. S. Peiris
Keyword(s):  
Firm Performance ◽  
Sri Lanka ◽  
Capital Structure ◽  
Regression Models ◽  
Stock Exchange ◽  
Descriptive Analysis ◽  
Model Specification ◽  
Moderator Variable ◽  
Return On Equity

Focus of the study is to examine the role of marketing expense in the relation between capital structure and firm performance using 35 public limited companies listed in Colombo Stock Exchange (CSE), Sri Lanka for the period 2012 to 2019. Inconclusive evidence reported on the role of marketing expense along with unavailability of sound literature raise the need of a study in this nature. The study employs total debt to total asset ratio to represent the leverage of a company while return on assets as proxy for firm performance. Further, return on equity has been introduced to test the robustness of each model developed within the study. Followed by a general descriptive analysis, panel data regression models have been designed to observe the mediator or moderator role of marketing expenditure in determining the relationship between the main variables of the study. Moreover, the study has taken a fair attempt to eliminate model specification bias by incorporating control variables to the main regression models. As per the regression model outputs it was observed that marketing expense operates as a moderator variable in Sri Lanka and most importantly it is weakening the adverse impact created by excessive debt level on firm performance. These findings appeal for a developed capital market in Sri Lanka and highlight the radical decision making under resource-based view. The results of the study agree with the related literature in other parts of the world.

Impact of corporate governance on capital structure: mediating role of cost of capital

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Aisha Javaid ◽  
Mian Sajid Nazir ◽  
Kaneez Fatima
Keyword(s):  
Corporate Governance ◽  
Capital Structure ◽  
Cost Of Capital ◽  
Stock Exchange ◽  
Institutional Ownership ◽  
Managerial Ownership ◽  
Content Type ◽  
Mediating Role ◽  
The Relationship

PurposeThis paper contributes to the existing literature by extending the empirical work on the relationship between corporate governance and capital structure by analyzing the mediating role of cost of capital in the non-financial firms listed on the Pakistan Stock Exchange (PSX).Design/methodology/approachThe sample for this study includes non-financial firms listed on the Pakistan Stock Exchange (formerly Karachi Stock Exchange) for the period of 2004–2016. Based on 1800 firm-year observations, three approaches of panel data analysis are applied for the step-wise analysis of the underlying study. Firstly, Pooled OLS is applied. Secondly, fixed and random effect panel regression followed by the Hausman test to check the unobservable individual heterogeneity of the data. Hausman test indicates that the fixed-effects model is the most appropriate model for the sample panel data.FindingsThe study's findings are that board size, board composition, CEO/Chair duality, institutional ownership and managerial ownership have statistically significant direct effect on the firm's financing decisions. However, CEO/Chair duality, institutional ownership and managerial ownership have significant indirect effect on firm's capital structure decisions. The interesting finding of the paper is on the evidence of mediating role of cost of capital in the nexus of corporate governance and capital structure. Moreover, some conventional determinants of capital structure, including the firm's size, asset structure of the firm, profitability, business risk and growth, are found as determinants of capital structure decisions of the firms.Research limitations/implicationsThere are a few limitations to our study which could be addressed by upcoming research. We did not include all the four mechanisms of corporate governance including board structure, audit structure, compensation structure and ownership structure. However, we used only five important attributes including board size, board composition and CEO/Chair duality form board structure, managerial ownership and institutional ownership form ownership structure of corporate governance as our explanatory variables to examine their impact on the capital structure choices of the firms. Future studies may fill this research gap by involving some other attributes of corporate governance and analyzing their effectiveness and impact on value relevant capital structure decisions. Further, due to limited time and resources, we only tested the mediating role of cost of capital, hence, future researchers can analyze the mediating and moderating roles of different variables which may influence the relationship between corporate governance and capital structure choices of the firms.Practical implicationsThe study has many valuable guidelines and practical implications for the financial managers of the corporations. Our results will facilitate the policymakers in setting their corporate governance policies and practices and making the value relevant capital structure decisions in compliance with the implications of corporate governance mechanism. In addition, our study provides the empirical evidence in accordance with the argument that good governance practices, particularly the voluntary disclosures by the firm may reduce the information asymmetry which, ultimately, reduces the agency cost and the cost of capital for the firm. However, while deciding the financial policy of the corporations, managers can use our findings in order to assess the effectiveness of corporate governance practices employed by the firm in achieving the optimal capital structure at which the weighted average cost of capital is at its minimum level.Originality/valueThis paper contributes to the literature by investigating the mediating role of the cost of capital in the relationship between corporate governance and capital structure decisions of the firms. This paper provides empirical evidence that corporate governance indirectly affects capital structure decisions through the mediating role of cost of capital.

scholarly journals Analisis Nilai Perusahaan Property Dan Real Estate Bursa Efek Indonesia

2021 ◽  
Vol 14 (2) ◽  
pp. 30-39
Author(s):  
LItausiil Rizqi ◽  
Muhadjir Anwar
Keyword(s):  
Real Estate ◽  
Capital Structure ◽  
Firm Value ◽  
Stock Exchange ◽  
Sampling Technique ◽  
Total Sample ◽  
Sampling Techniques ◽  
Analysis Technique ◽  
Positive Effect

The firm value can be interpreted as a measure of the success of the firm’s performance in increasing the prosperity of shareholders. The purpose of this study to determine the effect of profitability and capital structure on the firm value and the role of the capital structure as an mediating variable in property and real estate companies listed on the Indonesia Stock Exchange period 2017-2019. The sampling techniques in this study using purposive sampling technique with total sample of 44 companies. The analysis technique used is path analysis. This study finds the results that profitability has a significant positive effect on firm value, profitability has a significant positive on capital structure, capital structure has a non significant effect on firm value, and capital structure is not able to mediate the effect of profitability on firm value of property and real estate.

scholarly journals Composition of Commissioners and Directors, Profitability, Capital Structure and Investor Investment Decisions: Role of Sustainable Investment

2020 ◽  
Author(s):  
Krystella . ◽  
Tigor Sitorus ◽  
Edi Purwanto
Keyword(s):  
Capital Structure ◽  
Structural Equation ◽  
Stock Exchange ◽  
Investment Decisions ◽  
Financial Sector ◽  
Mediation Effect ◽  
Equation Modeling ◽  
Observation Data ◽  
Sustainable Investment

This study aims to determine the role of the sustainable investment on the composition of commissioners and directors, profitability, capital structure and investor investment decisions in financial sector companies listed on the Indonesia Stock Exchange. The research data were obtained from 2015-2018 by annual reports, financial reports, sustainability reports, summaries of tradable shares volume, and summaries of listed shares of financial sector companies listed on the Indonesia Stock Exchange (IDX). 48 units of observation data were collected. This study used quantitative analysis techniques with Structural Equation Modeling (SEM) and was processed by SmartPLS 3. The test results showed: 1) investor investment decisions are negatively and significantly affected by composition of commissioners and directors; 2) investor investment decisions are not affected by profitability; 3) investor investment decisions are positively and significantly affected by capital structure; 4) sustainable investment is positively and significantly affected by the composition of commissioners and directors; 5) sustainable investment is positively and significantly affected by profitability; 6) sustainable investment is not affected by capital structure; 7) investor investment decisions are positively and significantly affected by sustainable investment. Therefore, the sustainable investment mediation effect of the composition of commissioners and directors on investor investment decisions is quasi-mediating. It is also proven that there is fully meditating on the effect of profitability on investor investment decisions. While the effect of capital structure on investor investment decisions is not proven to mediate. Keywords: composition of commissioners and directors, profitability, capital structure, sustainable investment, investor investment decision

scholarly journals PERAN TATA KELOLA PERUSAHAAN PADA PENGUNGKAPAN MODAL INTELEKTUAL

2019 ◽  
Vol 14 (1) ◽  
pp. 104-114
Author(s):  
Totok Dewayanto
Keyword(s):  
Regression Analysis ◽  
Capital Structure ◽  
Intellectual Capital ◽  
Sampling Method ◽  
Stock Exchange ◽  
Total Sample ◽  
Company Performance ◽  
Manufacturing Companies ◽  
Government Ownership

The purpose of this study is to examine the role of corporate governance on the imposition of intellectual capital. This study uses company performance, capital structure and firm size as a control variable.The population in this study consisted of all manufacturing companies in the Indonesia Stock Exchange in the period 2015-2017. Sampling was carried out using the purposive sampling method. The total sample of this study was 381 companies.This study uses multiple regression analysis to test hypotheses. The results of this study indicate that board size, the proportion of independent commissioners, block holder ownership, and government ownership have a positive and significant effect on IC disclosure. Meanwhile, the board's tenure has no effect on IC disclosure.

scholarly journals THE ROLE OF PROFITABILITY IN MEDICATING THE EFFECT OF THE CAPITAL STRUCTURE OF COMPANY VALUE IN IDX PERIOD 2013-2017

2018 ◽  
Vol 7 (9) ◽  
pp. 4831
Author(s):  
I Gusti Ayu Agung Bulan Windu Kirana ◽  
Ida Bagus Badjra
Keyword(s):  
Capital Structure ◽  
Firm Value ◽  
Sampling Method ◽  
Total Population ◽  
Stock Exchange ◽  
Corporate Value ◽  
Industry Sector ◽  
Company Value ◽  
The Capital Structure

The value of the company reflects the prosperity for the owners of the company and creates the welfare of shareholders. In order for investors to get a high score then need to note the factors that affect the value of the company. This research was conducted in Consumer Goods Industry sector in Indonesia Stock Exchange with total population of 26 companies. The number of samples taken as many as 12 companies with purposive sampling method. Technique Analysis of data used is path analysis. Based on the results of the analysis found that the capital structure has a positive and significant impact on corporate value, profitability has a positive and significant impact on firm value. This means that the capital structure plays an important role for the company in increasing profitability, so the addition of proportion of debt that can increase profitability can be used to obtain higher corporate value. Keywords: capital structure, profitability, firm value  

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