Research Paper | Management | Indonesia | Volume 5 Issue 12, December 2016
The Effect of Financial Performance to Capital Structure of Indonesian Plantation Company in 2010-2015
Abstract: PTPN-V is an Indonesian plantation company which finance its operation from internal and external funding. The company utilized external fund for replanting investment activity and factory rehabilitation in 2010-2015. It is aimed to achive the companys vision and the best performance in next period. External funding will increase the cost and affect the company performance. Determination of the best funding based on the composition of capital structure will generate the maximum value of firm and minimum cost of capital. The purpose of this study is to analyze the impact of financial performance on capital structure using multiple regression method. The result of this study shows that variables which statistically significant in affecting capital structure are company size, company growth, tangibility, activity, and lag leverage. Company size, company growth, and lag leverage have positive impact on capital structure. Meanwhile, tangibility and activity have negative impact on capital structure.
Keywords: Capital structure, financial performance, plantation company, regression
Edition: Volume 5 Issue 12, December 2016,
Pages: 488 - 491
How to Cite this Article?
Riza Pahlevi, Sri Hartoyo, Tubagus Nur Ahmad Maulana, "The Effect of Financial Performance to Capital Structure of Indonesian Plantation Company in 2010-2015", International Journal of Science and Research (IJSR), https://www.ijsr.net/get_abstract.php?paper_id=ART20163469, Volume 5 Issue 12, December 2016, 488 - 491, #ijsrnet
How to Share this Article?
Similar Articles with Keyword 'Capital structure'
The Effect of Free Cash Flow and Financial Leverage on Financial Performance of Toll Road Infrastructure and Building Construction Companies Listed on the Indonesia Stock Exchange for Period 2014-2018
Finna Delphinia Santoso
Board of Directors? Characteristics Impact on Capital Structure Decisions: Evidence from Top 50 Turnover Non- Financial Companies Listed on the Colombo Stock Exchange