Abstract
This study investigated capital structure's effect on performance of ASEAN-5 countries' manufacturing firms listed in their stock exchanges from 2012 to 2016. The study uses ratio of total debt to total assets to measure a hypothetical firm's capital structure, calculated from the ratio of total debt to total debt plus market capitalization, as viewed from its accounting value. Meanwhile, the firm's performance is described by Return on Assets (ROA), used to view performance based on its accounting value, and by Tobin's Q, used to view performance based on market value. Through panel data analysis, this study's results indicate that capital structure negatively affects performance. The research also found a U-shaped, nonlinear relationship between capital structure and firm performance.
| Original language | English |
|---|---|
| Title of host publication | Contemporary Issues in Finance, Accounting, and Consumers' Behavior |
| Subtitle of host publication | Lessons from Indonesia |
| Publisher | Nova Science Publishers, Inc. |
| Pages | 37-64 |
| Number of pages | 28 |
| ISBN (Electronic) | 9781536175707 |
| ISBN (Print) | 9781536168815 |
| Publication status | Published - 15 Apr 2020 |
Keywords
- ASEAN-5
- Capital structure
- Firm performance