Debt Equity Ratio Research Articles

The Influence of Financial Performance on CSR in English League Football Clubs

This research seeks to find out if there is a relationship between corporate social responsibility (CSR) and financial performance as measured by return on assets, debt equity ratio, and the current ratio. The primary focus of this work is on the 25 English Premier League clubs that were registered with the Charity Commission UK from 2018 to 2021. Corporate Social Responsibility (CSR) is the independent (explanatory) variable, while Return on Assets (ROA), Debt Equity Ratio (DER), and Current Ratio (CR) are the dependent variables. Regression multivariate modeling is the technique of choice. DER and ROA are found to positively influence CSR, while CR is found to have no impact. The report asserts that stronger clubs have higher financial social responsibility expenditures than weaker clubs. This research contributes new content on the subject of corporate social responsibility (CSR) in the field of sports with particular emphasis on football and provides important guidance to club managers on how to combine finance and CSR strategies.

Assessing Financial Health: Impact of Current Ratio, Debt Equity Ratio, Return Assets on Banking Sector Returns

This study provides modern insights into the impact of Current Ratio, Debt-to-Equity Ratio, and Return on Assets on stock returns in the banking sector listed on the Indonesia Stock Exchange during 2018–2022. Unlike previous studies that indicated a positive relationship, this study found that these three factors had a negative and significant impact on stock returns. These findings underscore the need for more effective regulatory strategies to manage financial ratios and enhance the attractiveness of stocks in the capital market. A quantitative approach emphasizing numerical data analysis was employed. The study involved 10 conventional commercial banks. Secondary data was used, and it was determined that there were no symptoms of heteroscedasticity. Multiple linear regression analysis revealed that the independent variables Current Ratio, Debt-to-Equity Ratio, and Return on Assets negatively influenced the dependent variable, Stock Returns. The study emphasizes the importance of regulatory recommendations for banking companies to improve asset efficiency and maximize profits to attract higher stock demand. Additionally, the results provide valuable insights for investors, helping them consider financial factors for more informed investment decisions.

The Influence of Macroeconomic Fundamentals, Decisions Investment, And Capital on Stock Returns with Risk Profile and Earning as Intervening Variables and Good Corporate Governance as a Variable Moderation (Study of Banking Companies in Indonesia)

This study aims to analyze the influence of macroeconomic indicators, investment decisions, capital, risk profile, earnings, and corporate governance on stock returns in banking companies in Indonesia using the SEM-PLS method. The research results show that macroeconomic indicators (inflation, exchange rate, and interest rate) do not significantly affect stock returns either through risk profile or earnings. But if the macroeconomic variables are tested without mediation variables and directly on stock returns, they have a significant impact.In addition, investment decision indicators (current asset ratio and total asset growth), capital indicators (capital adequacy ratio and debt equity ratio), as well as risk profile indicators (non-performing loan and loan deposit ratio) also do not have a significant impact on stock returns. Similarly, the earning indicators (ROA, ROE, and NIM) and good corporate governance (board of directors and number of commissioners) do not show a significant influence on stock returns. These findings indicate that external factors and other variables are more dominant in influencing stock returns in banking companies in Indonesia.

PENGARUH STRUKTUR MODAL DAN KINERJA OPERASIONAL TERHADAP KINERJA KEUANGAN PADA PERUSAHAAN ASURANSI DI INDONESIA

Indonesia is a developing country with a large population and a relatively high level of economic growth, it has companies that perform well in various sectors but still vary in each economic sector. Performance as measured by the company's profitability will influence the company's condition. Large profits cannot be separated from the company's financial decisions. one of them is funding decisions. The funds obtained can come from debt and equity to form the company's capital structure. This research aims to examine the influence of capital structure and operational performance on financial performance. The data used is secondary data obtained from annual reports and financial reports accessed via idx.co.id. The independent variables are capital structure which is measured using the Debt Equity Ratio (DER) and operational performance which is measured using liquidity. The dependent variable in this research uses financial performance as measured by Return On Assets (ROA). The results prove that: (1) capital structure has a positive and significant effect on financial performance. (2). Operational performance has a negative and significant effect on financial performance. Keywords: Capital Structure, Operational Performance, Financial Performance

A STUDY ON COMPARITIVE STATEMENT PRACTICES OF TO ARYAPURAM CO-OPERATIVE URBAN BANK LTD RAJAHMUNDRY-AP

The banking sector in any economy plays a significant role in its growth and development. This paper is based on financial performance analysis of two leading banks of India. This paper aims to evaluate financial performance of The Aryapuram co-operative bank ltd on the basis of accounting ratios and also to study the functioning of the Indian banking system . In this paper different ratios of both the banks are compared. Capital adequacy ratio, debt equity ratio, leverage ratios, profit and loss account ratios, net interest margin ratio, return on equity and other ratios are used to compare the performance of both the banks. This research is based on the data collected from financial statements of the banks. The performance of both the banks are compared from the year 2019 to 2023. It is observed that performance of The Aryapuram co-operative bank ltd is in terms of ratio analysis but also in terms of customer satisfaction.The present study aims to identify the financial strengths and weakness of the Indian public sector by establishing relationship between the items of the balance sheet and profit and loss account. It is used to compare the current financial performance with the last five years and to study the existing financial position of the bank.The data used in this is secondary data through annual report. The data used in this study comparative balance sheet, common sized balanced sheet, that the current liabilities is higher than the current assets every year and suggesting to increase the current assets. And this study is conducted in the Aryapuram co-operative bank Ltd., for the study of the performance of the bank of last five years which is satisfactory.

Evaluating the Financial Performance of Retail Oil Distribution Companies in India: A Comparative Study of Public and Private Sectors

This study examines the financial performance of public and private sector retail oil distribution companies in India from 2013 to 2023. The research focuses on two hypotheses: first, that private sector companies (RIL and Nayara Energy) demonstrate superior profitability metrics (ROCE, ROA, ROE) compared to public sector counterparts (BPCL, HPCL, IOCL) due to operational flexibility and market-driven strategies; and second, public sector companies exhibit lower financial leverage (Debt-Equity Ratio) reflecting conservative financial management and government oversight. Statistical tools such as ANOVA were employed to analyse ten years of financial data, revealing significant differences in profitability metrics favouring private-sector companies, and lower financial leverage among public-sector entities. These findings provide investors, policymakers, and stakeholders valuable insights in understanding sectoral dynamics and making informed decisions. The study contributes to the existing literature by illustrating distinct financial strategies and performance trends within India's retail oil distribution sector, crucial for strategic planning and regulatory frameworks in the energy industry.

Pengaruh Intensitas Modal, Tingkat Hutang, dan Cakupan Biaya Tetap Terhadap Tarif Pajak Efektif

This research aims to determine and test empirically the influence of Capital Intensity, Debt Equity Ratio and Fixed Cost Coverage on Effective Tax Rates. The data used in this research is secondary data. This research uses a sample of companies in the Primary Consumer Goods (Consumer Non-Cyclicals) sector listed on the Indonesia Stock Exchange in 2018 - 2022. The number of samples in this research is 33 companies with a research year of 5 years, so the total sample is 165 data. This research uses a purposive sampling method. The total sample for this research is 33 financial reports. The data analysis techniques used are descriptive statistical analysis, panel data regression model estimation, panel data regression model selection techniques, classical assumption tests, multiple linear regression analysis, hypothesis testing, and coefficient of determination with the help of the Eviews 9 program. Capital Intensity, Debt Equity Ratio and Fixed Cost Coverage simultaneously influences the Effective Tax Rate. Partially, Capital Intensity influences the Effective Tax Rate. Debt Equity Ratio have no effect on Effective Tax Rates. Fixed Cost Coverage influences the Effective Tax Rate.

Pengaruh Leverage dan Sales Growth Terhadap Financial Distress dengan Profitabilitas Sebagai Moderasi

The transportation sector in Indonesia is one of the important sectors supporting the national economy. This sector consists of a variety of companies and has great potential for development. This research is based on the problem of decreasing demand due to restrictions on mobility and economic activity due to the pandemic. Causing a decrease in revenue and profits for transportation companies which can increase the risk of financial distress. This research uses financial leverage ratio calculations with DER (Debt Equity Ratio) and Sales growth to determine the effect on financial distress calculated using ICR and the role of profitability with ROA (Return On Assets) as moderation. The method used in this research is descriptive methods with a quantitative approach. Research on the transportation sector listed on the BEI in 2022. The research population was 49 companies with a sample of 41 companies. The financial distress method used is to calculate the ICR ratio (Interest Coverage Ratio) which is symbolized by a dummy. Data analysis uses multiple linear analysis and Moderating Regression Analysis (MRA) with the SPSS 26 application. Based on the research and discussion that has been carried out, the research results can be concluded that leverage has an effect but is not significant on financial distress. Sales growth has an effect but is not significant on financial distress. Profitability is able to moderate the relationship between leverage and financial distress and sales growth with financial distress.

The Effect of Ceo Compensation, Ceo Managerial Ability, and Ceo Tenure on the Company's Financial Performance with Der as the Mediating Variable

The study aims to analyze whether CEO Compensation, CEO Managerial Ability, and CEO Tenure partially have a positive and significant influence on the Debt-to-Equity Ratio. Furthermore, to find out whether CEO Compensation, CEO Managerial ability, CEO tenure, and Debt-equity ratio have a significant and positive effect on the Return on Assets. The type of quantitative analysis method used in this study is path analysis using the help of statistic software Eviews version 12. The data used in the study is secondary data taken from the annual financial reports published on the Indonesia Stock Exchange website for 5 years (2018-2022) on 25 companies in the Consumer Non-Cyclicals sector that are listed in the BEI Period 2018 – 2022 So the amount of data on this study was 5x25 or 125 observation data. The results of this study show that (1) CEO Compensation has no positive effect on the Debt to Equity Ratio (2) CEO Managerial ability hurts debt to equity ratio (3) CEO Tenure has no negative impact on the debt-to-equity ratio (4) CEO Compensation does not have a positive influence on the Return on Assets (5) CEO Management Ability has not a positive impact on return on assets (6) CEO tenure has not had a positive effect upon the return on the assets (7) Debt on the Equity Ratio hurts returns on the Assets. (10) Debt to Equity Ratio does not mediate the influence of CEO Tenure on Return on Assets.

Fundamental VS Makro Ekonomi on Stock Price : Indonesian Stock Exchange (IDX)

Geopolitical tensions especially those occurring in the Middle East, have significantly impacted the world economy. This impact was also felt by the Indonesian state, which impacted company share prices which experienced a decline due to geopolitical tensions, including the banking sector. Apart from geopolitical tensions, several other factors, such as the company's fundamental factors, also influenced the decline in share prices. Fundamental factors play an important role in determining a company's share price. These factors refer to various elements and variables that reflect the company's financial condition, operations, and prospects. So quite a few investors use fundamental analysis to assess whether current share prices reflect the company's true intrinsic value. This study seeks to reassess the elements affecting banking share prices by incorporating macroeconomic control variables related to these concerns to enhance the robustness of the findings. Utilizing a quantitative approach through panel data regression, the research focuses on banks listed on the Indonesia Stock Exchange from 2019 to 2023, with a sample of 16 companies meeting the selection criteria. The results reveal that Debt Equity Ratio (DER), Return On Assets (ROA), Return On Equity (ROE), GDP, inflation, and exchange rates collectively have a positive and significant impact on stock prices. However, when analyzed individually, only ROE and exchange rates show a significant effect, while DER, ROA, GDP, and inflation do not.

Impact of Capital Structure on Profitability of Commercial Banks in Tanzania

This paper aims to examine the impact of capital structure on the profitability of commercial banks in Tanzania using panel data from 2017to 2021. Specifically, the study wants to investigate the impact debt and equity in capital structure on profitability of commercial banks in Tanzania. The study employed panel data research design and used secondary data which were extracted from audited financial statements of commercial banks. Return on assets was used as the dependent variables while independent variables were debt and equity capital as well as the debt-equity ratio. Result from the analysis indicates that initially the variables were not normally distributed which necessitate normalization of variables. Correlation analysis was performed and there was no multicollinearity problem between the variables. Based on Hausman test fixed effect model was selected as the appropriate model. The results from the analysis showed that 1% increase in debt capital increases profitability of commercial bank by 16.79%. The positive debt-profitability coefficient implies opportunities for enhancing profitability of commercial bank through debt financing. Result further revealed that 1 % increase in debt-equity ratio is associated with 18.07% decline in profitability. Which implies negative relationship between debt-equity ratio and profitability. On the other hand, increase in equity finance is associated with decline in profitability holding other factors constant. However, the study recommends a comprehensive assessment and consideration of situational factors while carrying out capital structure decision inverse relationship between debt-equity ratio also implies that excessive debt may pose financial risk and make the company less attractive to potential investors.

Capital Structure and Profitability of Non-Life Insurance Company in Nepal

Purpose: The study aims to find out the non-life insurance firms in Nepal that create profit using capital. The research closely examines several important factors like business size (Size), liquidity ratio (LQ), total debt to total assets (TDR) and equity to total assets (ETA).Methods: Secondary data were gathered from annual reports and financial statements of twelve non-life insurance firms in Nepal which provided basis for this descriptive and explanatory research design with quantitative research approach. This study used multiple regression analysis and Pearson correlation to find important impact and associations by SPSS data analysis.Results: Debt ratios and ROA and ROE have a negative association that implies too much leverage reduces profitability. Although lowering risk depends mostly on liquidity, it also lowers assets returns. This is seen by the liquidity ratio and it greatly reduces ROA but has little effect on ROE. The equity ratio reveals how difficult it is to deploy equity correctly with a strong negative connection with ROA and a great negative link with ROE. Further illustrating the advantages of economies of scale, organizational size positively links with returns on Assets (ROA). All academics, legislators and practitioners agree that the expansion and competitiveness of the insurance sector depend on a sound capital structure.Conclusion: According to the study, non-life insurance firms need to improve profitability by means of strategic capital structure management. Managers need to monitor whether the company has adequate liquidity and a good debt equity ratio or not if the company wants to improve overall financial success.

Analysis of the Effect Financial Ratios to Probability Default With the Risk as Moderation in Indonesian Building Construction Sub-Sector Companies

The construction and building sector are one of the important sectors for Indonesia development and economy, furthermore it is also being an indicator in assessing the economic development of a country. The development in the sector of construction and building, which is currently facing intense market competition, is encouraging many companies to improve their management fundamentals. A company's inability to anticipate changes can result the decreasing in business volume, which eventually has a negative impact on profits and caused bankruptcy. The aim of this research is to analyze the effect of GPM, NPM, CR, DER, TIE, and TATO by moderating risk on probability default (probability of bankruptcy) in the construction and building companies in Indonesia which registered on the IDX for the 2014-2023 period. The research method used in this research is a panel data model to estimate the coefficient model. The result shows that Total Assets Turnover (TATO) has a positive and significant effect on the probability of bankruptcy. Meanwhile, Gross Profit Margin (GPM), Net Profit Margin (NPM), Current Ratio (CR), Debt Equity Ratio (DER), and Times Interest Earned (TIE), does not have a significant effect on the probability default in the construction and building companies.

Pengaruh Maqashid Syariah Index, Islamicity Performance Index dan Debt Equity Ratio terhadap Profitabilitas dengan Intellectual Capital sebagai Variabel Moderating pada Bank Umum Syariah di Indonesia

This study aims to determine and test the effect of the Sharia Index Maqashid Index, Islamic Performance Index, and Debt Equity Ratio on the profitability of sharia commercial banks in Indonesia, using intellectual capital as a moderation variable. This study uses quantitative research methodology and takes secondary data from the annual financial statements of Indonesian Sharia Commercial Banks in 2018-2022. The sample of eight banks was selected through the use of purposive sampling. Data analysis techniques are called Moderated Regression Analysis (MRA). The results of this study are as follows: (1) Sharia Maqashid Index has no influence on profitability; (2) Islamic performance index has an influence on profitability; (3) Debt Equity Ratio has a negative influence on profitability; (4) Intellectual Capital can moderate the influence of the Sharia Maqashid Index on profitability; (5) Islamic performance index of profitability cannot be moderated by intellectual capital; and (6) Intellectual Capital can moderate the effect of debt equity ratio on profitability.

PENGARUH LEVERAGE, INTENSITAS MODAL, DAN KOMISARIS INDEPENDEN TERHADAP TARIF PAJAK EFEKTIF

This research aims to determine the effect of Leverage (X1), Capital Intensity (X2), and Independent Commissioner (X3) on Effective Tax Rates. The independent variables in this research are Leverage with the Debt Equity Ratio (DER) indicator, Capital Intensity with the Capital Intensity Ratio (CIR) indicator, Independent Commissioner with the proportion of independent commissioners as an indicator. The Dependent Variable in this research uses the Effective Tax Rate which is measured using the Effective Tax Rate (ETR) indicator. The method used in this research is quantitative using secondary data sourced from the financial reports of all manufacturing sector companies during the 2020-2021 period. The sampling method in this research used a purposive sampling method with 172 observations. This research uses panel data regression analysis method which is processed with the Eviews 12 application. The results obtained from this research show that Leverage has a positive effect on Effective Tax Rates. Capital Intensity has a positive effect on Effective Tax Rates. Independent Commissioners have no influence on the Effective Tax Rate

Examining the factors influencing Stock Market in India

This study explores the factors that take hold on prices of stock which represent financial and real sector of our economy. These factors can be of any type like gold price, money supply, election, monetary policy, political change, investor sentiment, social media, unemployment, psychology, air quality, exchange rate, financial institutional investor, commodity channel index, consumer price index, domestic institutional investor, economic policy uncertainty, net profit margin, debt equity ratio, gross profit ratio and Morgan Stanley capital international in India. The study also reveals the relation between the factors with respect to change in stock prices. Study also determined whether there is any relation of income, education and investment with respect to stock market in India. Which factors affect the most to stock market in India? Study has done factor analysis of each factor with respect to Stock Market. The study reveals that there is relation among the factors affecting stock market in India. In thi study, ANOVA used to calculate the F value and it was founded that F value is greater than table or critic value. Hence null hypothesis is rejected.

Capital Structure and Dividend Payout of Quoted Agriculture Firms in Nigeria: Moderating Effect of Financial Performance

Despite the previous effort to analyze the capital structure and dividend payout interface with mixed results, it appears the moderating effect of financial performance on the nexus was yet to be empirically examined. This study examined the moderating effect of financial performance on the relationship between the capital structure and dividend payout ratio of quoted agriculture firms in Nigeria. Debt-equity ratio and debt-assets ratio were the proxies of capital structure, while dividend payout ratio measured dividend payout. Return on asset was the proxy for financial performance. Adopting an ex-post facto research design, the panel data sourced from the annual published accounts of the firms were subjected to multiple regression analysis using STATA 13. The results showed that the debt-equity ratio has a negative and significant effect on the dividend payout ratio of quoted agriculture firms in Nigeria. The debt-assets ratio has a positive and insignificant effect on the dividend payout ratio of agriculture firms in Nigeria. Return on assets has a positive and significant effect on the dividend payout ratio of quoted agriculture firms in Nigeria. Furthermore, return on assets has a negative and significant moderating effect on the relationship between debt-equity ratio and dividend payout ratio, while return on assets also has a negative and insignificant moderating effect on the relationship between debt-assets ratio and dividend payout ratio of quoted agriculture firms in Nigeria. The firms should use debt-financed assets more productively to generate an optimum return on assets to reverse the negative effect of the debt-equity ratio on the dividend payout ratio if they are to consistently pay competitive dividends and attract investment.

Factors Affecting the Ups and Downs of Stock Prices in Food and Beverage Subsector Companies Listed on the IDX for the Period 2020-2022

This study analyzes the Return On Assets and Debt to Equity Ratio on the ups and downs of Stock Prices in Food and Beverage companies listed on the Indonesia Stock Exchange (IDX) for 2020-2022. This study uses a purposive sampling method with 20 food and beverage sub-sector companies as samples. The variables used are ROA, DER, and Stock Price. This study uses a quantitative approach and data collection sourced from secondary data by collecting data on the financial statements of food and beverage sub-sector companies listed on the Indonesia Stock Exchange (IDX) and other sources such as the official websites of related companies. The data analysis used is descriptive statistics, classical assumption test, multiple linear regression analysis, and hypothesis testing. The results shown in this study are (1) partial Return On Asset (ROA) has no significant effect on stock prices, (2) partial Debt Equity Ratio (DER) has no significant effect on stock prices, and (3) simultaneously Return On Asset (ROA) and Debt Equity Ratio (DER) have no significant effect on stock prices.

Kinerja Keuangan Bank Mandiri Tbk Sebelum Dan Sesudah Stock Split

This study aims to analyze the financial performance of Bank Mandiri Tbk before and after the stock split. The type of research used is quantitative research. The objects in this study are the financial statements and market performance (stock prices) of PT Bank Mandiri Tbk before and after the stock split. The sample is the financial statements for 2014-2016 as the period before the stock split and 2018-2020 after the stock split. The results of the study showed no difference in financial performance interpreted by the Current Ratio, Debt Equity Ratio, Return on Equity, Total Assets Turn Over both before and after the Stock Split policy.

Pengaruh DER, ROA, TATO Terhadap Harga Saham Bank Umum Yang Terdaftar Di BEI

This research aims to determine the influence of debt-equity ratio, Return on Assets, and Total Asset Turnover on stock prices simultaneously, partially, and dominantly in Commercial Banks listed on the Indonesian Stock Exchange for the 2020-2022. The type of research is quantitative. The sampling technique was carried out using purposive sampling. The samples taken were 45 banks. The data collection technique is looking at the annual financial report via the official IDX website. The data analysis technique is multiple linear regression analysis and simultaneous, partial, and dominant tests. This research shows that Debt to Equity Ratio, Return on Assets, and Total Asset Turnover significantly affect stock prices. Partially, the Debt-to-equity ratio has a negative and insignificant effect on stock prices, return on assets has a positive and significant effect, and total asset turnover has a positive and significant effect on stock prices. Dominantly is Return on Assets. This result is strengthened by the coefficient of determination value of 58.4%.