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Research Article Open access CC BY 4.0

The Role of Capital Structure as Mediator in the Influence of Firm Characteristics and Maturity on Financial Performance

Vaniny Eka Trijayanti, Erwin Saraswati, Syaiful Iqbal

Asian Journal of Economics, Business and Accounting · pp. 33–43 · Published 16 May 2022

10.9734/ajeba/2022/v22i1530627

Abstract

This study aims to determine the variables that can affect the financial performance of manufacturing firms listed on the Indonesia Stock Exchange (IDX) for the 2015-2019 period. A total of 59 firms were obtained using a non-probability approach with purposive sampling technique. The data was collected through an annual report and then analyzed using the Regression analysis tool and measured using a financial scale. The variables used in this study are: firm size, business risk, firm age, assets structure, growth rate, capital structure, and financial performance. Based on the results of data analysis and discussions that have been carried out in this study, it can be concluded that capital structure is able to influence the relationship between firm size and firm age on financial performance. However, capital structure cannot give a significant influence on the relationship between business risk, asset structure and growth rate on financial performance. In addition, this study can also prove that firm size, firm age, asset structure, growth rate and capital structure have a significant direct influence on financial performance.

Firm size business risk firm age assets structure growth rate capital structure and financial performance

Cited by 1

Capital structure and corporate litigation

Zhi Li, Yue Liu, Wenxuan Huang · International Review of Economics & Finance · 2024

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