Company Life Cycle and Capital Structure of Manufacturing Sector in the Consumer Goods Industry

Jurnal Bisnis dan Manajemen

卷:18

SULAEMAN R. NIDAR¹  RIZKI A. P. UTOMO¹ 

[1] Universitas Padjadjaran;

关键词: Leverage;    Consumer Goods;    Company Life Cycle;    Proftability;    Liquidity;    Company Size;    Non-Debt Tax Shield;    Asset Tangibility;    Growth Opportunites;   

DOI  :  

来源: DOAJ

【 摘 要 】

Determinaton of the optmal capital structure needs to be done by each company. Capital structure is the balance orrato between foreign capital and equity capital. One proxy of capital structure is leverage. The well-known theory indetermining the leverage or capital structure is the pecking order theory. This theory explains that the company will usethe funds to have a safer risk in advance in the determinaton of corporate leverage. There are many variables that affectthe determinaton of a company’s leverage, so there is no single and standard model in determining the leverage orcapital structure of the company. One variable that adds the explanaton of the determinaton of a company’s leverageis the life cycle as proposed by Dickinson (2011). The difference of company life cycle is differentated by the company’scash flow including cash flow from operatng, fnancing, and investment. This study aims to determine whether thecompany life cycle can explain the determinaton of leverage or capital structure of the company, and fnd out theinfluence of other variables such as proftability, liquidity, size of frm, non-debt tax shield, asset tangibility, and growthopportunites on the leverage or capital structure of the company. This study was conducted in the consumer goodscompanies in 2012 and 2013. This study uses regression with dummy variables. The results showed that in 2012 and 2013,the variable of the life cycle can be one of the variables that can explain leverage the company’s decision. The variablesthat affect the leverage are proftability, liquidity, non-debt tax shield, asset tangibility, and growth opportunites. Thevariable which has no effect on leverage is the size of the company.

【 授权许可】

Unknown