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Journal : JER

The Effect of Capital Structure, Agency Costs, and Liquidity on Financial Performance (Manufacturing Companies Listed on the Indonesia Stock Exchange) Damayanti, Silvia; Anam, Khoirul
Jurnal Economic Resource Vol. 8 No. 1 (2025): March-August
Publisher : Fakultas Ekonomi & Bisnis Universitas Muslim Indonesia

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.57178/jer.v8i1.1328

Abstract

Financial performance represents a company’s capability as shown in its financial statements, which stakeholders use as a basis for decision-making. This study aims to analyze the impact of capital structure, agency costs, and liquidity on the financial performance of manufacturing companies listed on the Indonesia Stock Exchange (IDX) during the 2019-2023 period. The study employs several variables, including capital structure, which is measured using the debt-to-equity ratio (DER), liquidity measured by the current ratio (CR), agency costs measured by the balance of power (BOP), and financial performance measured by return on assets (ROA). The population of this study consists of all consumers non-cyclicals companies listed on the IDX, totaling 129 companies. The selected sample comprises 78 companies that have complete financial reports over the five-year period from 2019-2023, selected using the purposive sampling method and analyzed using multiple regression analysis. The results of this study show that DER has a negative effect on ROA, BOP has a negative effect on ROA, and CR has no significant effect on ROA.
Co-Authors Abdul Karim, Dewi Damayanti Achmad Faris Fizabillah Achmad Yudi Wahyudin Adinda Salsabila Afrianto Ahmad Faris Alfidav Yasril Kumara Anak Agung Istri Kumala Dewi Ananta Syahbana, Javier Syarif Andry Anita Dewi Andry Anita Dewi Anggraeni, Windi Ardansyah Aryanto, Vincent Didiek Wiet Bahar Amal Bama Tangguh Galih Charisa Nabirawati Sitindaon Christian Sitohang, Arga Darma Suputra, Gede Ngurah Dewi, Vidia Nastiti Diana Aqmala Dirga Dito Aditya Sasongko Egidia Zahra Vanessa Purba En Nahl Al Atiqo Sanabila Irfana Farhan Fauzan Fatriana, Nina Fauziyah, Asnaful Firdani Mutiara Gede Feri Kartiana Gitsali Hanum Salsabila Santosa Hasani Faris Maulana Hendriyanto, Pujo Himawan S , Rizki I Gede Oeinada I Gusti Ayu Dwinta Cahyani I Gusti Ayu Sugiartini Mahardika I Gusti Ngurah Jun Arya Wangsa I Made Budiana I Nyoman Rauh Artana I Nyoman Suarka I Putu Gede Yasa Partawan Ida Ayu Laksmita Sari Kadek Dea Shinta Ketut Widya Purnawati KHOIRUL ANAM Khonsa, Aisyah Nabila Kinanti, Anggun Putri Kireine Kosma Ramadhani Komang Triyas Wardhani Louis Valdo Made Yani Anggarawati Maharani, Putu Arbi Regina Maria Gorethy Nie Nie Maria Matildis Banda Masrur Mauridhoh, Mohamat Maulana Hasanudin Raditya Ma’ruf, Ngaenun Mirda Raihan Khairunnisa Mudhofar, Wali Muhammad Yasin Nabilah, Nurul Khadifatun Ngurah Indra Pradhana Ni Luh Kade Yuliani Giri Ni Luh Putu Ari Sulatri Ni Luh Putu Ari Sulatri Ni Made Andry Anita Dewi Ni Made Puspita Dewi Ni Made Wirian Ni Made Wiriani Ni Putu Ayu Yogi Ardhaningsih Ni Putu Candra Lestari Ni Putu Iin Permata Dina Liana Ni Putu Luhur Wedayanti Ni Wayan Nadia Setyawati Ni Wayan Suarji Indrawati Novrilia Atika Nabila NPL Wedayanti Piji Pakarti Pramono, Ibnu Jati Puspitasari, Fadilah Putu Ella Kumala Sari Putu Trisna Windasari Rachel Ratu Rahmadani, Firdausi Nuzula Rahmadhani, Vissi Aulia raihan , Achmad dany ramadani, Novita Rosi, Fahrur Rosid, Masrukhil Safei, Imam Sarmoko Sarmoko Siti Amina Siti Fatimah Subekti, Aqlan Suhadi, Ahmad Sulatri, Ni Luh Putu Ari Syahbana, Javier Syarif Ananta Tria Putriani Turohmah, Irfa Vigo Atsil Nugraha Vitaloka Prischa Sisilia Wenda Reka Pratama Widati Hardini Widya Kumala, Dinda Yasin, S.E., M.M, Dr. Muhammad Yuri Rahmanto Zahra, Mutia Haristi Zamzama Billa, Zahro Adha Zendrato, Kezia Davina Putri Zita Atzmardina