Abstract
ABSTRACT: Bussiness competition in the textile and garment industry is now increasingly high, need to be managed properly, especially it’s financial performance. This study aims to determine the effect of capital structure on financial performance on textile and garment companies listed on the Indonesia Stock Exchange in 2016-2018 both partially and simultaneously. Capital structure is measured by Debt to Asset Ratio (DAR) (X1), Debt to Equity Ratio (DER) (X2), and Long term Debt to Equity Ratio (LtDER)(X3). Company performance is measured by Return on Investment (ROI) (Y). This research is a quantitative case study. Secondary data obtained from the annual financial statetments. The population of the research are 21 companies. The number of samples in this study were 8 companies. The analysis technique used is multiple regression to test the effect of independent variables on the dependent variable. The results showed that partially DAR and DER variables significantly influence the ROI, while the LtDER variable has no significant effect on ROI. All three variables have a significant effect on ROI simultaneousl.
Highlights
Struktur modal optimal menjadi salah satu hal penting yang harus ditetapkan perusahaan dalam meraih tujuan bisnis
This study aims to determine the effect of capital structure on financial performance on textile and garment companies listed on the Indonesia Stock Exchange in 2016-2018 both partially and simultaneously
The results showed that partially Debt to Asset Ratio (DAR) and Debt to Equity Ratio (DER) variables significantly influence the Return on Investment (ROI), while the Long term Debt to Equity Ratio (LtDER) variable has no significant effect on ROI
Summary
Struktur modal optimal menjadi salah satu hal penting yang harus ditetapkan perusahaan dalam meraih tujuan bisnis. DAR berpengaruh positif dan signifikan pada kinerja perusahaan yang diproksikan dengan ROI (Nasrun, 2014; Fachry, 2016). Hasil penelitian pada variabel-variabel bebas yang berpengaruh negatif terhadap kinerja perusahaan antara lain: DAR berpengaruh negatif signifikan pada ROI (Setiana dan Rahayu, 2012; Nasrun, 2014). Semakin tinggi rasio berarti semakin besar jumlah modal pinjaman yang digunakan untuk investasi pada aktiva guna menghasilkan keuntungan bagi perusahaan. Munawir (2014:89) berpendapat bahwa Return On Investment (ROI) adalah rasio profitabilitas untuk mengukur kemampuan perusahaan menghasilkan keuntungan dengan keseluruhan dana yang ditanamkan dalam aset yang digunakan untuk operasi. Beberapa hal ini menarik peneliti untuk melakukan penelitian tentang pengaruh struktur modal terhadap kinerja keuangan perusahaan pada perusahaan tekstil dan garment yang terdaftar di. Sampel Nama Perusahaan Tekstil dan Garment yang Terdaftar di BEI Tahun 2016-2018
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