The Moderating Role of Capital Structure on The Relationship Between Corporate Governance and Firm Performance : Evidence from The Manufacturing Sector in Indonesia

Krismi Oftapiani, Rita Wijayanti

Abstract


This study aims to examine the effect of the capital structure moderating variable on the relationship between corporate governance and company performance. This study uses secondary data, namely annual reports of manufacturing companies listed on the Indonesia Stock Exchange for the 2020-2021 period. A total of 96 company samples were obtained by purposive sampling technique, resulting in 192 observations. Multiple regression analysis was performed with the help of the SPSS program. The results showed that corporate governance has a positive effect on firm performance, and capital structure has a negative effect on the relationship between corporate governance and firm performance.


Keywords


corporate governance, firm performance, capital structure, manufacturing sector.

Full Text:

PDF

References


Almasati, Nawaf, Ron Bird, and Yue Lu. 2020. Corporate Governance, Institutions, Markets, and Social Factors. Research in International Business and Finance 51(August 2019): 101089. https://doi.org/10.1016/j.ribaf.2019.101089.

Anggreni, Maretha Kris Dwi, and Robiyanto Robiyanto. 2021. "The Influence of Capital Structure and Ownership Structure on Company Performance with Corporate Governance as a Moderating Variable." Journal of Business Economics and Entrepreneurship 10(2): 100.

Dewi, Rosiana, Aulia Dian Saputri, Indira Ayu Ramadhani, and Salsabilla Maulia Putri. 2022. The Effect of Good Corporate Governance on Financial Performance on Companies Listed in the Indonesia Stock Exchange in 2019-2021. : 14250.

Economics, Faculty, and Udayana University. 2017. "Putu Ery Setiawan 2 Faculty of Economics and Business, Udayana University, Indonesia." : 12844.

Endrawati, Melati Wahyu Tri, and Erman Denny Arfinto. 2021. "The Influence of Corporate Governance Practices on Capital Structure Decisions with Gender Diversity Moderating Variables." Diponegoro Journal of Management 10(3): 115.

Gutirrez-Ponce, Herenia, Julian Chamizo-Gonzlez, and Nuria Arimany-Serrat. 2022. Disclosure of Environmental, Social, and Corporate Governance Information by Spanish Companies: A Compliance Analysis. Sustainability (Switzerland) 14(6): 119.

Karundeng, Frandy, Grace B Nangoi, and Herman Karamoy. 2016. "Analysis of the Influence of Corporate Social Responsibility on Company Value with Profitability, Management Ownership, and Company Size as Moderating Variables (Empirical Study of Mining Companies Listed on the Indonesian Stock Exchange." : 110.

Krisyadi, Robby. 2021. "Analysis of the Influence of Corporate Governance on Financial Performance in Companies Listed on the Indonesian Stock Exchange." 1(1).

Mai, Muhammad Omar. 2020. "The Influence of Capital Structure on Company Performance in the Manufacturing Industry with Sharia Criteria on the Indonesian Stock Exchange." 8(1): 15970.

Mansour, Marwan et al. 2022. "The Relationship between the Quality of Corporate Governance and Corporate Performance: The Moderation Role of Capital Structure."

Muhammad, Hussain, Stefania Migliori, and Sana Mohsni. 2021. 15 Int. J. Business Governance and Ethics Capital Structure and Firm Performance: The Role of Corporate Governance .

Noviani, Afi Virna, Apriani Dorkas Rambu Atahau, and Robiyanto Robiyanto. 2019. "Capital Structure, Profitability, and Corporate Value: Moderation Effects of Good Corporate Governance." Journal of Economics and Business 22(2): 391415.

Noviarti, and Yosi Stefhani. 2022. "Analysis of Corporate Governance, and Corporate Values." Journal of Management 6(2): 7382.

Taxes, Avoidance, and Company Size. 2022. PROFITABILITY, SALES GROWTH, LEVERAGE,. 11(04): 82032.

Taxation, Media Accounting. 2021. No Title. 6(2): 5574.

Rafiah Aisyatul, Wahyu, and Eny Zuhriyah. 2018. "The Effect of Corporate Governance on Capital Structure with Age of Company as Moderation Variables." Business and Economics Conference In Utilizing Modern Technology : 3847.

Robert G. Cooper. 1976. ?? (Article) ? ??? (Information) [. The Electronic Library 34(1): 15.

Rodrigo Garcia Motta, Anglica Link, Viviane Aparecida Bussolaro, Geraldo de Nardi Junior et al. 2021. No????????????????????? ?????????????????Title. Pesquisa Veterinaria Brasileira 26(2): 17380. http://www.ufrgs.br/actavet/31-1/artigo552.pdf.

Saidat, Zaid, Mauricio Silva, and Claire Seaman. 2019. "The Relationship between Corporate Governance and Financial Performance: Evidence from Jordanian Family and Nonfamily Firms." Journal of Family Business Management 9(1): 5478.

Song, Hyoung Ju, Yu Na Yoon, and Kyung Ho Kang. 2020. The Relationship between Board Diversity and Firm Performance in the Lodging Industry: The Moderating Role of Internationalization. International Journal of Hospitality Management 86(May 2019): 102461. https://doi.org/10.1016/j.ijhm.2020.102461.




DOI: https://doi.org/10.30596/miceb.v1i0.119

Refbacks

  • There are currently no refbacks.