The Impact of Capital Structure on Financial Performance of the listed Agriculture Companies in Indonesia
Journal Title: GATR Global Journal of Business & Social Science Review - Year 2015, Vol 3, Issue 1
Abstract
Objective - The paper analyzes the impact of capital structure on the financial performance of the agriculture companies listed in Indonesia Stock Exchange. In addition, this paper also analyzes which one between equity and asset that is able to cover the firm's debt. Methodology/Technique - The time scope of this thesis is taken from 2010 until 2014 with 16 agricultural companies listed in Indonesia Stock Exchange as the samples. The independent variable in this thesis is capital structure that is measured by Debt Equity Ratio and Debt Asset Ratio. The dependent variable is financial performance that is measured by GPM, NPM, ROA, ROE, and EPS. The methodology used in this thesis is multiple regression and the data is processed by using SPSS. Findings - The result of this paper shows that Debt Equity Ratio, which is one of the indicators of capital structure, has a significant impact and a negative relationship with ROE. Novelty - This study also finds that rather than the land, the value of the company's building contributes more significantly towards the agriculture company's total assets which are more able to cover the debt.
Authors and Affiliations
Imelda Suardi, Kauri Dwitya Noor
Keywords
Related Articles
- EP ID EP185170
- DOI -
- Views 125
- Downloads 0
Education Performance and the Determinants of Secondary School Enrolment in Indonesia
Objective – The development in education sector as one form of human capital development has been implemented in Indonesia. Some government programs have been attempted as an alternative solution to improve the quality o...
The Role of Technology to Achieve Sustainable Economic Development in Africa
Objective - The purpose of this paper is to study how the technological innovation can achieve and promote sustainable development particularly in Africa. Methodology/Technique - It considers forms of innovation technol...
Alternatives Management of Erosion and Sedimentin Wanggu River Estuary at Kendari City Southeast Sulawesi Province
Objective - Analysed alternative management of erosion and sediment in Wanggu River .Type.This study was theoretical testing in analysing the research subject. Methodology/Technique - – Literature review analyse. Findi...
Investigating the Moderating Role of Technology Transfer Office on Academic's Entrepreneurial Orientation and Research Commercialisation Relationship
Objective - The purpose of the present study is to investigate the moderating role of technology transfer office on the relationship between academic's entrepreneurial orientation and commercialisation. Methodology/Tech...
"The Village Creative Industries": Solution Strengthening Regional Competitiveness In The Asean Economic Community (AEC) (Study Case In Kendang Jimbe Industry At Blitar, East Java)
Objective - The purpose of this paper is to develop the potential of the region through the establishment of a model village of the creative industries in the regions as a reinforcement of local industries in the face of...