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Analysis of Financial Flexibility, Earning Volatility, and Asset Structure on Capital Structure in Infrastructure Companies Listed on the Indonesia Stock Exchange 2021–2024 Anggara, Amelia Putri; Febrianto, Igo; Kesumah, Fajrin Satria Dwi
International Journal Of Education, Social Studies, And Management (IJESSM) Vol. 5 No. 2 (2025): The International Journal of Education, Social Studies, and Management (IJESSM)
Publisher : LPPPIPublishing

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.52121/ijessm.v5i2.813

This study explores the impact of financial flexibility, earnings volatility, and asset structure on the capital structure of companies operating in the heavy construction and civil engineering subsector of Indonesia’s infrastructure industry, listed on the Indonesia Stock Exchange between 2021 and 2024. Employing panel data regression on 285 firm-year observations, the research identifies several critical insights. First, financial flexibility approximated by the ratio of retained earnings to total assets has a positive and statistically significant relationship with capital structure. This suggests that firms with greater internal financial strength tend to rely more on debt financing when additional funding is required, allowing them to respond efficiently to financial risks and investment opportunities in this capital-intensive environment. Second, earnings volatility, calculated as the standard deviation of return on assets (ROA), does not exhibit a significant influence on capital structure decisions. This outcome indicates that income variability does not markedly affect firms’ use of debt, likely due to their ability to manage unstable earnings through adaptive financial practices. Lastly, asset structure—measured by the proportion of fixed assets to total assets—also shows no significant correlation with capital structure. This result challenges the universal applicability of the pecking order theory, especially within industries characterized by high capital demands and unique risk profiles, such as heavy construction. The findings offer valuable insights by analyzing financial decision-making in a capital-intensive sector within a developing economy and highlight the potential need to reconsider traditional capital structure theories in specific industry contexts.

The Effect of Sustainability Report Disclosure and Sustainable Growth on Firm Value: The Moderating Role of CEO Power Effendi, Dicky Rizky Ramadhan; Hendrawaty, Ernie; Febrianto, Igo
Amkop Management Accounting Review (AMAR) Vol. 5 No. 2 (2025): July - December
Publisher : Sekolah Tinggi Ilmu Ekonomi Amkop Makassar

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.37531/amar.v5i2.2949

Environmental issues have become a global concern, with the energy sector identified as the most significant contributor to greenhouse gas emissions. This study provides a novel contribution by examining the moderating role of CEO power, measured by CEO ownership, in strengthening the effects of sustainability reporting disclosure and sustainable growth on firm value. Focusing on Indonesia’s energy sector during the crisis and post-pandemic recovery period (2019–2023), the study employs a Random Effects GLS model with White two-way cluster robust standard errors. Firm value is measured using Tobin’s Q; sustainability disclosure is proxied by the Global Reporting Initiative (GRI) index; sustainable growth by the Sustainable Growth Rate (SGR); and CEO power by CEO ownership (CEOP). The results indicate that GRI has no significant impact on firm value, while SGR has a positive effect and CEOP has an adverse impact. However, the interaction terms GRICEOP and SGRCEOP exhibit significantly positive effects on firm value. These findings suggest that CEO ownership strengthens the relationship between corporate sustainability initiatives and firm value creation.

Analysis of Financial Flexibility, Earning Volatility, and Asset Structure on Capital Structure in Infrastructure Companies Listed on the Indonesia Stock Exchange 2021–2024 Anggara, Amelia Putri; Febrianto, Igo; Kesumah, Fajrin Satria Dwi
International Journal Of Education, Social Studies, And Management (IJESSM) Vol. 5 No. 2 (2025): The International Journal of Education, Social Studies, and Management (IJESSM)
Publisher : LPPPIPublishing

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.52121/ijessm.v5i2.813

This study explores the impact of financial flexibility, earnings volatility, and asset structure on the capital structure of companies operating in the heavy construction and civil engineering subsector of Indonesia’s infrastructure industry, listed on the Indonesia Stock Exchange between 2021 and 2024. Employing panel data regression on 285 firm-year observations, the research identifies several critical insights. First, financial flexibility approximated by the ratio of retained earnings to total assets has a positive and statistically significant relationship with capital structure. This suggests that firms with greater internal financial strength tend to rely more on debt financing when additional funding is required, allowing them to respond efficiently to financial risks and investment opportunities in this capital-intensive environment. Second, earnings volatility, calculated as the standard deviation of return on assets (ROA), does not exhibit a significant influence on capital structure decisions. This outcome indicates that income variability does not markedly affect firms’ use of debt, likely due to their ability to manage unstable earnings through adaptive financial practices. Lastly, asset structure—measured by the proportion of fixed assets to total assets—also shows no significant correlation with capital structure. This result challenges the universal applicability of the pecking order theory, especially within industries characterized by high capital demands and unique risk profiles, such as heavy construction. The findings offer valuable insights by analyzing financial decision-making in a capital-intensive sector within a developing economy and highlight the potential need to reconsider traditional capital structure theories in specific industry contexts.

The Effect ESG and Independent Commissioner On Firm Value Hendrawaty, Ernie; Febrianto, Igo
Jurnal Ekonomi Pembangunan Vol 13 No 3 (2024): Volume 13 Nomor 3 Tahun 2024
Publisher : Fakultas Ekonomi dan Bisnis Universitas Lampung

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.23960/jep.v13i3.4796

This study aims to examine the effect of Environmental, Social, and Governance (ESG) score and the proportion of independent commissioners on firm value among companies listed in the ESG Leaders Index on the Indonesia Stock Exchange. Firm value is proxied by the Cyclically Adjusted Price Earnings Ratio (CAPE Ratio), while ESG score is measured based on Morningstar Sustainalytics ratings and independent commissioners are measured by the proportion of independent commissioners to the total board of commissioners. This study employs a quantitative approach using secondary data obtained from financial statements, sustainability reports, stock price data, index information, and other relevant sources. The sample was selected using purposive sampling and consisted of 23 companies that met the research criteria. The data were analyzed using multiple linear regression with Microsoft Excel and JASP. The results show that ESG score has a positive but statistically insignificant relationship with the CAPE Ratio. Meanwhile, independent commissioners have a negative but statistically insignificant relationship with the CAPE Ratio. These findings indicate that ESG score and independent commissioners are not yet strong determinants of firm value in the observed sample. Future research is suggested to include control, mediating, or moderating variables to provide a more comprehensive explanation of firm value

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