The Effect of Business Risk and Company Size on Profitability with Capital Structure as Intervening Variables in Manufacturing Companies Listed on the Indonesia Stock Exchange in 2015-2019


Authors : Adib Bayu Shalahudin; Said Djamaluddin

Volume/Issue : Volume 7 - 2022, Issue 3 - March

Google Scholar : https://bit.ly/3IIfn9N

Scribd : https://bit.ly/3wMq8pd

DOI : https://doi.org/10.5281/zenodo.6396992

Abstract : The purpose of this study is to: 1) Determine the impact of business risk on the manufacturing company's capital structure. 2) Knowledge of the impact of company size on the capital structure of a manufacturing company. 3) Determine the impact of business risk on a manufacturer's profitability. 4) Knowledge of the impact of company size on manufacturing company profitability. 5) Knowledge of the impact of the capital structure on the profitability of a manufacturing company. 6) Knowledge of the impact of business risk on profitability through the capital structure of a manufacturing company. 7) Knowledge of the impact of company size on profitability through the capital structure of a manufacturing company. The type of study used in this study is a quantitative study. This study uses panel data and data processing using evaluation software version 9. The population of this survey consisted of 184 companies (IDX) in Indonesia in 2015. The number of survey samples was 20 companies. The results of the survey show that: 1) Business risk has a significant negative impact on the capital structure. 2) The size of the company has a significant positive impact on the capital structure. 3) Business risk has a significant positive impact on profitability. 4) The size of the company has a significant negative impact on profitability. 5) The capital structure has no or no impact on profitability. 6) The capital structure cannot convey the impact of business risk on profitability. 7) The capital structure can convey the impact of company size on profitability.

Keywords : business risk, company size, capital structure, profitability

The purpose of this study is to: 1) Determine the impact of business risk on the manufacturing company's capital structure. 2) Knowledge of the impact of company size on the capital structure of a manufacturing company. 3) Determine the impact of business risk on a manufacturer's profitability. 4) Knowledge of the impact of company size on manufacturing company profitability. 5) Knowledge of the impact of the capital structure on the profitability of a manufacturing company. 6) Knowledge of the impact of business risk on profitability through the capital structure of a manufacturing company. 7) Knowledge of the impact of company size on profitability through the capital structure of a manufacturing company. The type of study used in this study is a quantitative study. This study uses panel data and data processing using evaluation software version 9. The population of this survey consisted of 184 companies (IDX) in Indonesia in 2015. The number of survey samples was 20 companies. The results of the survey show that: 1) Business risk has a significant negative impact on the capital structure. 2) The size of the company has a significant positive impact on the capital structure. 3) Business risk has a significant positive impact on profitability. 4) The size of the company has a significant negative impact on profitability. 5) The capital structure has no or no impact on profitability. 6) The capital structure cannot convey the impact of business risk on profitability. 7) The capital structure can convey the impact of company size on profitability.

Keywords : business risk, company size, capital structure, profitability

Never miss an update from Papermashup

Get notified about the latest tutorials and downloads.

Subscribe by Email

Get alerts directly into your inbox after each post and stay updated.
Subscribe
OR

Subscribe by RSS

Add our RSS to your feedreader to get regular updates from us.
Subscribe