Analysis Of The Effect Of Company Age And Capital Structure On Profitability In Primary Consumer Sector Companies Listed On The Indonesia Stock Exchange
Abstract
The purpose of research is to analyze the effect of company age and capital structure on profitability in companies engaged in the primary consumer sector listed on the Indonesia Stock Exchange (IDX). The data used in this study are secondary data that can be accessed through S&P Capital IQ. Furthermore, data processing will be carried out with STATA version 15. Profitability is calculated using Return on Equity (ROE). The age of the company will be measured by how long the company has been listed on the IDX. Capital structure measurement will be done using Debt Equity Ratio (DER). 155 data sets will be used in this study, consisting of 31 companies over a 5-year period. The results of this study, namely (1) company age has a positive and significant effect on profitability and (2) capital structure has a positive and significant effect on profitability.
Keywords
Full Text:
PDF - 0502 - PAPER 01References
Akben-Selcuk, E. (2016). Does Firm Age Affect Profitability? Evidence From Turkey. International Journal of Economic Sciences, V(3), 1-9. https://doi.org/10.20472/es.2016.5.3.001
Al-Taani, K. (2012). The Relationship between Capital Structure and Firm Performance: Evidence from Jordan. Journal of Finance and Accounting, 1(3), 166-181. https://doi.org/10.11648/j.jfa.20130103.11
Barron, David N.. West, Elisabeth and Hannan, M. T. (1994). A Time to Grow and a Time to Die: Growth and Mortality of Credit Unions in New York Author(s): David N. Barron, Elizabeth West, Michael T. Hannan Published by : The University of Chicago Press Stable URL: http://www.jstor.org/stable/2782074. 100(2), 381-421 https://doi.org/10.1086/230541
Basdekis, C., Christopoulos, A., Katsampoxakis, I., & Lyras, A. (2020).
Profitability and optimal debt ratio of the automobiles and parts sector in the Euro area. Journal of Capital Markets Studies, 4(2), 113-127. https://doi.org/10.1108/JCMS-08-2020-0031
Bodie, Z., Kane, A., Marcus, A. J., & Jain, R. (2014). Investments. Singapore: McGraw Hill Education.
Coad, A., Segarra, A., & Teruel, M. (2013). Like milk or wine: Does firm performance improve with age? Structural Change and Economic Dynamics, 24(1), 173-189. https://doi.org/10.1016/j.strueco.2012.07.002
Cull, R., Demirguc-Kunt, A., & Morduch, J. (2006). Financial Performance and Outreach: A Global Analysis of Leading Microbanks. World Bank Policy Research Working Paper 3827, February, 1-51.
Dai, R. R. M., & Nurahmi, M. K. (2016). the Effect of Financial Leverage To the Profitability At Sub- Sectors of Food and Beverage Companies Listed on Indonesia Stock Exchange in 2010-2014. AdBispreneur, 1(2), 183-194. https://doi.org/10.24198/adbispreneur.v1i2.10240
Dann, L. Y., & Mikkelson, W. H. (1984). Convertible debt issuance, capital structure change and financing-related information. Some new evidence. Journal of Financial Economics, 13(2), 157-186. https://doi.org/10.1016/0304-405X(84)90022-9
Doucouré, B., & Diagne, A. (2020). The effect of size and age on the performance of Senegalese small food companies: the role of market orientation.
Transnational Corporations Review, 12(4), 363-373. https://doi.org/10.1080/19186444.2020.1832426
Erdoğan, S. (2015). The Effect of Capital Structure on Profitability. 15(1), 307–
https://doi.org/10.4018/978-1-4666-6635-1.ch018
Eriotis, N., Vasiliou, D., & Ventoura-Neokosmidi, Z. (2007). How firm characteristics affect capital structure: an empirical study. Managerial Finance, 33(5), 321-331. https://doi.org/10.1108/03074350710739605
Fort, T. C., Haltiwanger, J., Jarmin, R. O. N. S., & Miranda, J. (2018). How Firms Respond to Business Cycles: The Role of Firm Age and Firm Size Source: IMF Economic Review, Vol. 61, No. 3 (2013), pp. 520-559 Published by: Palgrave Macmillan Journals on behalf of the International Monetary Fund Stable URL: https://. 61(3), 520-559. https://doi.org/10.1057/imfer.2013.15
Gwa, P. D. (2021). ©College of Education, Katsina-Ala. 3(August), 19-28. Hannan, M. T., & Freeman, J. (1984). Structural Inertia and Organizational
Change Author(s): Michael T. Hannan and John Freeman Published by: American Sociological Association Stable URL: https://www.jstor.org/stable/2095567 American Sociological Association is collaborating with JSTOR. American Sociological Review, 49(2), 149-164.
Heilgendorff, F. J. (2018). Conceptualizing capitalist globalization. Philosophy of Globalization, 47-62. https://doi.org/10.1515/9783110492415-005
Kieso, D. E., Weygandt, J. J., & Warfield, T. D. (2018). Intermediate Accounting: IFRS Edition. Wiley
Kusuma, H. (2005). Company Size and Profitability: Economic Development, 10 No.1 (April), 81-93.
Kotler, P., & Armstrong, G. (2014). Principles of Marketing. England: Pearson. Kusuma, R. P. (2016). The Effect of DAR, Company Size, Risk, Tax, and
Liquidity on the Profitability of Mining Sector Companies in Indonesia.
BISMA (Business and Management), 8 (February), 191-203. https://doi.org/10.26740/bisma.v8n2.p191-203
Loderer, C. F., & Waelchli, U. (2011). Firm Age and Performance. SSRN Electronic Journal, April, 2-52. https://doi.org/10.2139/ssrn.1364018
M.gunde, Y., Murni, S., & H.rogi, M. (2017). Food and Beverages Sub-Industry Manufacturing Companies Which. 5(3), 4185-4194.
Myers, S. C., & Majluf, N. S. (1983). September 1981 Latest Revision December 1983. ReVision, (December). Nber Working Paper Series, December. https://scholar.google.co.id/scholar?hl=id&as_sdt=0%2C5&q=Myers%2C+S.
+C.%2C+%26+Majluf%2C+N.+S.+%281983%29.+September+1981+Latest
+Revision+December+1983.+ReVision%2C+%28December%29.&btnG=
Nengzih, & Arlita Asteria Dita. (2011). Analysis of the Effect of Cash Flow and Company Life Cycle on Stock Prices (Study on Manuaktur Companies on the Indonesia Stock Exchange). Journal of Accounting Research, UOI Accounting Study Program, Volume 3, (2086-2563), 520-532. http://digilib.mercubuana.ac.id/manager/t!@file_article_abstract/Isi_Article_ 866758134581.pdf
Nelson, R. R., & Winter, S. G. (1982). An Evolutionary Theory of Economic Change. The Belknap Press of Havard University Press.
Parkin, M. (2016). Economics. Canada: Pearson.
Paymaster, B., & Ebi, A. (2021). Capital Structure and Firms Performance: An Evidential Analysis of Consumer Goods Sectors. IOSR Journal of Humanities And Social Science (IOSR-JHSS, 26(8), 38-43. https://doi.org/10.9790/0837-2608063843
Permatasari, I., & Puspitasari, D. (2012). THE EFFECT OF WORKING CAPITAL MANAGEMENT ON PROFITABILITY (EMPIRICAL STUDY OF MANUFACTURING COMPANIES LISTED ON THE INDONESIAN
STOCK EXCHANGE). AKRUAL Journal of Accounting, 4 (September), 35- 50.
Ramadita, E. S., & Suzan, L. (2019). The Effect of Production Costs, Debt to equity ratio, and Inventory Turnover on Profitability. ASET Journal (Accounting Research), 11(1), 159-168. https://doi.org/10.17509/jaset.v11i1.17440
Rymarczyk, J. (2020). Technologies, opportunities and challenges of the industrial revolution 4.0: Theoretical considerations. Entrepreneurial Business and Economics Review, 8(1), 185-198. https://doi.org/10.15678/EBER.2020.080110
Sari Prastista, Mendra Yuria, S. W. P. (2019). The Effect of Good Corporate Governance and Leverage on Earnings Management in Mining Companies. Innovation of Community Service Research Products & Challenges of the Industrial Revolution 4.0 Era, 2 (1), 439-453.
Schroeder, R. G., Clark, M.W., & Cathey, J. M. (2013). Financial Accounting Theory and Analysis: Text and Cases. Wiley.
Sekaran, U., & Bougie, R. (2016). Research Methods for Business - A Skill Building Approach. Wiley.
Shaheen, S., & Malik, Q. A. (2019). The Impact of Capital Intensity, Size of Firm and Profitability on Debt Financing in Textile Industry of Pakistan The Impact of Capital Intensity, Size of Firm and Profitability on Debt Financing in Textile Industry of Pakistan Sadia Shaheen (Principal. Interdisciplinary Journal of Contemporary Research in Business, 3(10), 1061-1066.
Suwarto, S. (2017). Factors Affecting Employee Performance. Exis: Scientific Journal of Economics and Business, 19(2), 152-162. https://doi.org/10.33087/eksis.v11i1.180
Tifow, A. A., & Sayilir, O. (2015). Capital Structure and Firm Performance: An Analysis of Manufacturing Firms in Turkey. Eurasian Journal of Business and Management, 3(4), 13-22. https://doi.org/10.15604/ejbm.2015.03.04.002
Vu Thi, A.-H., & Phung, T.-D. (2021). Capital Structure, Working Capital, and Governance Quality Affect the Financial Performance of Small and Medium Enterprises in Taiwan. Journal of Risk and Financial Management, 14(8),
https://doi.org/10.3390/jrfm14080381
Wale, L. E. (2009). Performance Analysis of a Sample of Microfinance Institutions of Ethiopia. SSRN Electronic Journal, 4(May), 287-298. https://doi.org/10.2139/ssrn.1398167
Winarno, W., Hidayati, L. N., & Darmawati, A. (2015). Factors Affecting the Profitability of Manufacturing Companies Listed on the Indonesia Stock Exchange. Economia Journal, 11(2), 143-149. https://doi.org/10.21831/economia.v11i2.7957
Refbacks
- There are currently no refbacks.
Copyright (c) 2024 William Tjong, Brigita Hartono
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Accounting Study Program | Faculty of Economics and Business | Universitas Pelita Harapan | Lippo Karawaci, Tangerang, Indonesia, 15811 | Tel +62 21 5460901 | Fax +62 21 5460910