Factors Influencing Capital Structure and Its Impact Toward Profitability in Consumer Goods Manufacturing Companies Listed in the IDX for the 2019-2023 Period
DOI:
https://doi.org/10.38035/jafm.v5i6.1415Keywords:
Non-Debt Tax Shield, Business Risk, Company Size, Capital Structure, ProfitabilityAbstract
This research aims to analyze the influence of non-debt tax shield (NDTS), business risk, and company size on capital structure and its impact on profitability. The research adopts a quantitative method with a sample of 46 manufacturing companies in the consumer goods sector. The analysis was conducted using multiple regression analysis processed with SPSS. The results reveal that NDTS has a significant negative effect on capital structure. Tax savings from depreciation replace the tax benefits of interest, leading companies with high NDTS to reduce debt usage. Business risk also has a significant negative effect on capital structure. Companies with high business risk prefer a conservative capital structure, relying on equity or internal funds to mitigate default risk. Conversely, company size has a significant positive effect on capital structure. Capital structure significantly negatively affects profitability. While debt can enhance profitability if managed properly, a high debt proportion increases interest burdens, thereby reducing profits.
References
Ahmed, R., & Bhuyan, R. (2020). Capital Structure and Firm Performance in Australian Service Sector Firms: A Panel Data Analysis. Journal of Risk and Financial Management, 13(9). https://doi.org/10.3390/jrfm13090214
Alalmai, S., Al-Awadhi, A. M., Hassan, M. K., & Turunen-Red, A. (2020). The influence of religion on the determinants of capital structure: the case of Saudi Arabia. Journal of Islamic Accounting and Business Research, 11(2), 472–497. https://doi.org/10.1108/JIABR-03-2018-0043
Amare, A. (2021). Capital structure and profitability: Panel data evidence of private banks in Ethiopia. Cogent Economics and Finance, 9(1). https://doi.org/10.1080/23322039.2021.1953736
Anita, S. Y., Nurhayati, E., Adhan, A., Martaseli, E., & Oktavia, V. (2024). Pengaruh Struktur Modal Terhadap Profitabilitas Perusahaan. Management Studies and Entrepreneurship Journa, 6(1), 16–27. https://doi.org/10.37278/eprofit.v6i1.799
Ariwangsa, I. O. (2021). Risiko Bisnis Dan Struktur Modal Perusahaan Yang Tergabung Di LQ-45. Bisma: Jurnal Manajemen, 7(2), 359. https://doi.org/10.23887/bjm.v7i2.38976
Brealey, R. A., Myers, S. C., & Allen, F. (2020). Principles of Corporate Finance (13th ed.). McGraw-Hill Education.
Brigham, E. F., & Ehrhardt, M. C. (2019). Fundamentals of Financial Management (16th ed.). South-Western Cengage Learning.
Dede Hertina, Hidayat, M. B. H., & Deningtyas, F. (2020). Kinerja Perusahaan Pengaruh dari Struktur Modal, Profitabilitas dan Ukuran Perusahaan. El-Kahfi | Journal of Islamic Economics, 1(02), 28–33. https://doi.org/10.58958/elkahfi.v1i02.45
Fachri, S., & Adiyanto, Y. (2019). Pengaruh Non-Debt Tax Shield, Firm Size, Business Risk Dan Growth Opportunity Terhadap Struktur Modal Pada Perusahaan Sub-Sektor Otomotif Yang Terdaftar Di Bursa Efek Indonesia (Bei) Periode 2014-2018. Sains Manajemen, 5(1), 73–88. https://doi.org/10.30656/sm.v5i1.1517
Harahap, S. S. (2018). Analisis Kritis Atas Laporan Keuangan. In Edisi 12. Jakarta: Rajawali Pers.
Hidayati, A., Lakoni, I., & 3, W. L. S. (2021). Analisis Hubungan Struktur Modal Berdasarkan Trade Off Theory Dan Pecking Order Theorypada Sektor Perbankan Yang Terdaftar Pada Indeks LQ 45. Jurnal Manajemen Dan Perbankan (JUMPA), 8(3), 1–15. https://doi.org/10.55963/jumpavol4no1feb2017.v8i3.400
Indriani, M., Ernitawati, Y., Kharisma, A., Maftukhin, & Afridah, N. (2021). Non Debt Tax Shield, Struktur Aktiva, Profitabilitas dan Ukuran Perusahaan terhadap Kebijakan Hutang Perusahaan pada Sektor Pertambangan yang Terdaftar di BEI. Journal of Accounting and Finance (JACFIN), 3(1), 11–95. https://jurnal.umus.ac.id/index.php/jacfin/article/download/976/597
Kasenda, F. (2020). Determinants of Capital Structure and Their Implications for Financial Performance of Construction Service Companies. PJAEE: Palarch’s Journal Of Achaeology Of Egyp/ Egypthology, 17(1). https://archives.palarch.nl/index.php/jae/article/view/1550/1561
Kedzior, M., Grabinska, B., Grabinski, K., & Kedzior, D. (2020). Capital Structure Choices in Technology Firms: Empirical Results from Polish Listed Companies. Journal of Risk and Financial Management, 13(9). https://doi.org/10.3390/jrfm13090221
Kim, Y. J., & Kim, C. H. (2021). The Impact of Capital Structure on the Profitability Efficiency of ICT firms. Proceedings - 2021 21st ACIS International Semi-Virtual Winter Conference on Software Engineering, Artificial Intelligence, Networking and Parallel/Distributed Computing, SNPD-Winter 2021, 2013, 127–135. https://doi.org/10.1109/SNPDWinter52325.2021.00036
Luthan, L. (2023). Pengaruh Beban Kerja, Stres Kerja, Dan Lingkungan Kerja Terhadap Kinerja Karyawan Pt. Bank 9 Jambi Cabang Kerinci. Al Fiddhoh: Journal of Banking, Insurance, and Finance, 4(2), 119–128. https://doi.org/10.32939/fdh.v4i2.2899
Mardianto. (2021). Pengaruh tata kelola perusahaan terhadap struktur modal pada perusahaan di bei tahun 2014-2018 Influences of corporate governance on capital structure idx listed companies for the year 2014-2018. Jurnal Feb Unmul Forum Ekonomi, 23(2), 274–284. https://journal.feb.unmul.ac.id/index.php/FORUMEKONOMI/article/download/8078/1261
Mardiyanto, R., Luthfi, M., & Aini, N. (2022). Analysis of the Imposition of Entry Stamps on the Crew of Transportation Equipment against Permenkumham Number 44 of 2015. 11(5), 3380–3383. https://doi.org/10.35335/legal.xx.xx
Mowen, M., Hansen, D. R., & Heitger, L. (2018). Management Accounting: The Cornerstone of Business Decisions, 8th Edition (8th ed.). Cengage Learning.
Muhani, Ferliany, A., & Setyawati, I. (2022). Determinan struktur modal pada perusahaan di Bursa Efek Indonesia yang terdaftar di LQ45. Fair Value?: Jurnal Ilmiah Akuntansi Dan Keuangan, 5(2). https://journal.ikopin.ac.id/index.php/fairvalue/article/view/2396
Nashikh, M., Sukmaningrum, P., Ratnasari, R., & Hendratmi, A. (2022). Capital Structure, Macroeconomics, Business Risk and Liquidity to Profitability: Company Listed in the Jakarta Islamic Index. Miicema 2019, 251–259. https://doi.org/10.5220/0009854700002900
Nguyen, S. La, Pham, C. D., Truong, T. Van, Phi, T. Van, Le, L. T., & Vu, T. T. T. (2023). Relationship between Capital Structure and Firm Profitability: Evidence from Vietnamese Listed Companies. International Journal of Financial Studies, 11(1). https://doi.org/10.3390/ijfs11010045
Nofialdi, D., & Yumna, A. (2021). Effect of Business Risk and Profitability on The Capital Structure of Consumer Goods Companies Listed on The Indonesia Stock Exchange Before and During COVID-19 Pandemic. FMS: Financial Management Studie, 1(3), 1–21. https://jkmk.ppj.unp.ac.id/index.php/fms/article/view/40/27
Nurul Aini, N., Suherman, S., & Mardiyati, U. (2022). Determinants Of Capital Structure On Property And Real Estate Companies Listed On The Indonesia Stock Exchange For The Period Of 2015-2020. International Journal Of Education, Social Studies, And Management (IJESSM), 2(3), 14–33. https://doi.org/10.52121/ijessm.v2i3.90
Permana, E., & Agustina, Y. (2021). Pengaruh Risiko Bisnis dan Ukuran Perusahaan Terhadap Return On Asset Dengan Struktur Modal Sebagai Variabel Moderasi (Studi pada Perusahaan Asuransi yang terdaftar di Bursa Efek Indonesia Periode 2015-2018). Kompartemen?: Jurnal Ilmiah Akuntansi, 19(1), 51. https://doi.org/10.30595/kompartemen.v19i1.11224
Putra, R. R., Sari, M., & Astuty, W. (2021). Effect of Business Risk, Company Size, and Asset Structure on Capital Structure with Profitability as an Intervening Variable (Case Study on Manufacturing Companies on the Indonesia Stock Exchange). International Journal of Research and Review, 8(8), 284–289. https://doi.org/10.52403/ijrr.20210839
Putu, N., & Wulandari, I. (2019). Pengaruh Non Debt Tax Sheild, Ukuran Perusahaan dan Pertumbuhan Penjualan Terhadap Struktur Modal. 8(6), 3560–3589.
Samudera, F., & Agustina, T. S. (2024). Pengaruh Gaya Kepemimpinan Transaksional Terhadap Kinerja Karyawan Dengan Motivasi Kerja Sebagai Mediasi Pada Farkhanss Towing Service Kota Surabaya. Jurnal Ilmiah Manajemen, Ekonomi, & Akuntansi (MEA), 8(1), 165–175. https://doi.org/10.31955/mea.v8i1.3667
Saunders, M., Lewis, P., & Thornhill, A. (2021). Research Methods for Business Students. Pearson Education Limited.
Serrasqueiro, Z. (2021). What are the determining factors in the capital structure decisions of small and medium-sized firms in Cabinda, Angola? Revista Contabilidade & Finanças, 23(87). https://www.scielo.br/j/rcf/a/Bddqmmx993khT6B4Wv8746b/?lang=en
Sinuhaji, Y. A. (2023). The Influence of Leadership Style and Organizational Climate on Job Stress of Company Employees. 6(12), 2058–2069. https://doi.org/10.56338/jks.v6i12.4755
Suhardjo, Y., Karim, A., & Taruna, M. S. (2022). Effect of profitability, liquidity, and company size on capital structure: Evidence from Indonesia manufacturing companies. Diponegoro International Journal of Business, 5(1), 70–78. https://doi.org/10.14710/dijb.5.1.2022.70-78
Supriyono, M., Syaputri, M., Yunita, M., Lestari, W., & Ruhiyat, E. (2020). Pengaruh non debt tax shield dan risiko bisnis terhadap struktur modal. PROSIDING WEBINAR “Insentif Pajak Untuk WP Terdampak Covid-19” Program Studi Sarjana Akuntansi Universitas Pamulang, 1, 42–49. http://openjournal.unpam.ac.id/index.php/Proceedings/article/view/9935/6306
Suryani, A. W., & Sari, M. I. (2020). Dampak Non-Debt Tax Shield dan Resiko Bisnis Terhadap Struktur Modal Perusahaan Manufaktur Indonesia. Ekonomi Bisnis, 25(2), 108. https://doi.org/10.17977/um042v25i2p108-119
Susilawaty, T. E. (2021). The Effect of Debt Tax Shield and Non Debt Tax Shield on Capital Structure on Advertising Printing Media Companies Listed in Indonesia. Enrichment: Journal of Management, 12(1), 639–646.
Wulandari, D. A., & Januari. (2020). Pengaruh Profitabilitas dan Non Debt Tax Sheild Terhadap Struktur Moda Pada Perusahaan Manufaktur Sub Sektor Farmasi Yang Terdaftar Di Bursa Efek Indonesia. Jurnal Riset Akuntansi Dan Bisnis, 20(1), 100–105. https://jurnal.umsu.ac.id/index.php/akuntan/article/view/4871
Yanti, Y., Sastra, E., & Kurniawan, T. B. (2022). The Impact of Financial Flexibility and Business Risk on Capital Structure with Firm Size as a Moderating Variable. Proceedings of the Tenth International Conference on Entrepreneurship and Business Management 2021 (ICEBM 2021), 653(Icebm 2021), 314–322. https://doi.org/10.2991/aebmr.k.220501.048
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2025 Hani Rosita, Nuryaman Nuryaman
This work is licensed under a Creative Commons Attribution 4.0 International License.
Authors who publish their manuscripts in this journal agree to the following conditions:
- The copyright on each article belongs to the author(s).
- The author acknowledges that the Journal of Accounting and Finance Management (JAFM) has the right to be the first to publish with a Creative Commons Attribution 4.0 International license (Attribution 4.0 International (CC BY 4.0).
- Authors can submit articles separately, arrange for the non-exclusive distribution of manuscripts that have been published in this journal into other versions (e.g., sent to the author's institutional repository, publication into books, etc.), by acknowledging that the manuscript has been published for the first time in the Journal of Accounting and Finance Management (JAFM).
