The Effect of Funding Policy And Macroeconomics on Economic Value-Added Creation In Infrastructure State-Owned Enterprises

Ratu Chumairoh (Fakultas Ekonomi dan Bisnis, Universitas Indonesia)

Syntax Literate: Jurnal Ilmiah Indonesia
Jurnal Ilmiah Indonesia

Determining the optimal capital structure for a company is crucial as it impacts its value. Additionally, macroeconomic conditions such as Inflation and interest rates can affect a company's value. This study aims to establish a correlation between capital structure, measured by the Debt to Equity (DER) ratio, macroeconomic factors, reflected in Inflation and interest rates, and the creation of economic value added (EVA) and company profitability, measured by the ratio of return on invested capital (ROIC). A panel data regression methodology was used to conduct this research, and a sample of infrastructure state-owned enterprises that carried out National Strategic Projects (PSN) between 2011 and 2021 was taken. The results showed that DER had a negative and significant impact on EVA and ROIC, while Inflation did not affect ROIC and EVA. Additionally, the interest rate had a positive and significant impact on ROIC but not on EVA.