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Journal : Journal Integration of Social Studies and Business Development

Correlation Between Financial Performance Indicators and Capital Structure of Coal Mining Industry Listed on the Indonesia Stock Exchange Yansil, Eko Thio Ady; Sumirat, Erman Arif; Nainggolan, Yunieta Anny
Journal Integration of Social Studies and Business Development Vol. 1 No. 2 (2023)
Publisher : Integrasi Sains Media

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.58229/jissbd.v1i2.84

Abstract

This research examines the correlation between capital structure (as proxied by Debt-to-Equity Ratio) and several financial performance indicators, including profitability, asset structure, liquidity, and firm size. This research focuses on 18 coal mining companies listed on the Indonesia Stock Exchange (IDX) by at least 2020. The data is derived from the financial reports published on the IDX between 2020 and 2022. Multiple Linear Regression technique is being employed to determine the correlations. Before employing the Multiple Linear Regression technique, several tests were conducted to examine the data's validity and reliability, including normality, multicollinearity, autocorrelation, and heteroscedasticity tests. Multiple Linear Regression is employed after the data passes the tests, consisting of partial regression, ANOVA, and goodness-of-fit tests. This research found that profitability and liquidity negatively correlate with capital structure. At the same time, asset structure and firm size positively correlate with capital structure. Overall, the result of this research supports Pecking Order Theory, in which firms are preferred to use internal financing first. When firms generate higher profits and cash flow, they may consider re-balancing external financing. This research also concludes that profitability, asset structure, liquidity, and firm size represent 47.7% of the variables correlated with capital structure. Future research may be conducted to seek other variables that have not been included in this research yet but are correlated with capital structure.
What Factors Attract Venture Capital And Angel Investor Funding: Case Of Indonesia Esa, Abrori Ahmad Noor; Nainggolan, Yunieta Anny
Journal Integration of Social Studies and Business Development Vol. 1 No. 2 (2023)
Publisher : Integrasi Sains Media

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.58229/jissbd.v1i2.92

Abstract

This research aims to understand the factors that influence venture capital investment decisions in startups and create a model for making these decisions. The Analytic Hierarchy Process method gathered data from venture capitalists and investors. To design a decision-making concept model, this study examined various factors considered in venture capital and investors' decision on an investment based on previous significant studies. It employed 16 evaluation items centered on four areas —entrepreneur, product and service, market, and finance. The results concluded that the product/service sector was the most important area, with the product's value being the most important factor. Business compatibility is the second most important factor, followed by the entrepreneur sector. This research conducted a survey based on a sample from Indonesia. The conclusion of this study is expected to help venture capitalists and investors better judge startup funding.