SEIKO : Journal of Management & Business
Vol 6, No 2.1 (2023)

Analysis of the Impact of Tax Policies and Interest Rates on Company Performance: The Role of Capital Structure Intervention

Zatnika, Yudi (Unknown)
Tresnasari, Rini (Unknown)



Article Info

Publish Date
28 Dec 2020

Abstract

This article presents a comprehensive analysis of the intricate relationships between tax policies, interest rates, capital structure, and company performance within the specific context of BCA KCU Bandung. Through a saturated sampling technique involving 37 employees, the study employs the Structural Equation Modeling (SEM) technique, specifically utilizing SmartPLS analysis. The results indicate that tax policies significantly influence both capital structure and company performance, emphasizing the importance of strategic financial planning in response to changing tax frameworks. Additionally, the study highlights the significant impact of capital structure on company performance, underlining the importance of well-managed debt-equity ratios. In contrast, interest rates did not exhibit a statistically significant direct or indirect impact on company performance in this setting. These findings provide valuable insights for financial managers and policymakers, emphasizing the nuanced nature of financial decision-making and the need for context-specific strategies to optimize company performance in dynamic economic environments. Keywords: Tax Policies, Interest Rates, Company Performance, Capital Structure.

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Journal Info

Abbrev

seiko

Publisher

Subject

Social Sciences

Description

The Journal Management & Business (SEJaman) provides a forum for academics and professionals to share the latest developments and advances in knowledge and practice of management business both theory and practices. It aims to foster the exchange of ideas on a range of important management subjects ...