Research Article
The Influence of Capital Structure on Corporate Financial Performance Moderated by GDP: Analysis on the Food and Beverage Sub-Sector Listed on the IDX in 2013-2019
@INPROCEEDINGS{10.4108/eai.3-8-2021.2315095, author={Khirstina Curry and Imam Zul Fikri}, title={The Influence of Capital Structure on Corporate Financial Performance Moderated by GDP: Analysis on the Food and Beverage Sub-Sector Listed on the IDX in 2013-2019}, proceedings={Proceedings of the First Lekantara Annual Conference on Public Administration, Literature, Social Sciences, Humanities, and Education, LePALISSHE 2021, August 3, 2021, Malang, Indonesia}, publisher={EAI}, proceedings_a={LEPALISSHE}, year={2022}, month={1}, keywords={capital structure; debt; gdp}, doi={10.4108/eai.3-8-2021.2315095} }- Khirstina Curry
Imam Zul Fikri
Year: 2022
The Influence of Capital Structure on Corporate Financial Performance Moderated by GDP: Analysis on the Food and Beverage Sub-Sector Listed on the IDX in 2013-2019
LEPALISSHE
EAI
DOI: 10.4108/eai.3-8-2021.2315095
Abstract
Financial performance can be used to measure the success of a company. In this study, Gross Domestic Product (GDP) moderated the capital structure and financial performance. Higher GDP determines the appropriate composition of capital structure and improves the company’s financial performance. This research used the panel data regression method. Results indicated that the factors influencing financial performance are Loan to Deposit Ratio (LDR), GDP moderated Domestic Product (GDP), GDP moderated Debt to Equity (GDER), and GDP moderated Loan to Deposit Ratio (GLDR). The financial performance of the company is influenced by the moderation of DER and LDR by GDP. In other words, a fairly strong influence is shown by economic conditions on the determination of the capital structure and also the improvement of the company’s finances